2015 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks Profile

Expenses (as % of Net Revenues) — continued

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Average

Top 25% Profit Top 25% Growth

ADMINISTRATIVE EXPENSES Amortization of Intangibles

1.3% 0.2% 0.6% 0.9% 3.0% 82.8% 17.2% 20.0%

0.2% 0.1% 0.2% -0.1%

0.8% 0.2% 0.5% 2.4%

Officer Life

Interest

Other

Total Administrative

0.5%

3.9%

TOTAL EXPENSES

74.6% 25.4% 26.4%

80.0% 20.0% 22.0%

PRE-TAX PROFIT (LOSS)

EBITDA

Average

Top 25% Profit Top 25% Growth

Expense Growth Over Prior Year Compensation Expense

9.3% 6.5% 6.2% 6.4%

16.7% 14.7% 11.7%

23.0%

Selling Expense

8.8%

Operating Expense

12.9% 16.8%

Administrative Expense

6.0%

EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization

Expenses (as % of Net Revenues)

Average

Top 25% Profit

Top 25% Growth

70%

62.8%

59.7% 57.7%

60%

50%

40%

30%

20%

13.8% 13.6% 12.8%

2015 Best Practices Study

10%

3.9%

3.0%

3.1% 2.9% 3.5%

0.5%

0%

Agencies with Revenues Between $10,000,000 and $25,000,000

Compensation

Selling

Operating

Administrative

117

Note: See page 163 for an explanation of column headings