2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Expenses (continued)

Average

+25% Profit

+25% Growth

Operating Expenses Occupancy Expenditures

3.8% 0.1% 3.9% 0.6% 0.4% 1.0% 1.3% 0.2% 1.5% 0.8% 0.6% 1.0% 0.7% 0.4% 1.9% 0.8% 0.1% 0.5% 0.4% 0.5% 0.9% 0.6% 0.6% 2.7% 4.8%

4.2% 0.0% 4.2% 0.4% 0.3% 0.7% 1.2% 0.4% 1.5% 0.9% 0.7% 1.0% 0.5% 0.2% 2.1% 0.6% 0.0% 0.2% 0.2% 0.3% 0.9% 1.7% 0.4% 4.6% 7.5%

3.7% 0.1% 3.8% 0.9% 0.1% 1.1% 0.8% 0.1% 0.8% 0.6% 0.5% 0.9% 0.5% 0.3% 2.1% 0.9% 0.1% 1.1% 0.4% 0.3% 0.9% 1.4% 1.0% 0.5% 3.8%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation

Total Office Equipment

IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous

13.9%

13.2%

13.4%

Total Operating

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

79.2% 20.8% 23.2%

76.5% 23.5% 25.7%

73.0% 27.0% 29.3%

Total Expenses

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

11.8% 9.2% 4.1% -3.7%

9.1% 8.1% 6.0% 3.2%

21.9% 14.0%

Selling Expense

Operating Expense

7.3% 1.3%

Administrative Expense

72 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses