2015 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

2.0% 0.3% 0.4% 0.0% 2.7% 80.8% 19.2% 22.5%

0.0% 0.2% 0.3% 0.0%

0.5% 0.4% 0.4% 0.0%

Officer Life

Interest

Other

Total Administrative

0.5%

1.3%

TOTAL EXPENSES

69.0% 31.0% 31.7%

86.7% 13.3% 15.7%

PRE-TAX PROFIT (LOSS)

EBITDA

Average

Top 25% Profit Top 25% Growth

Expense Growth Over Prior Year Compensation Expense

12.2%

6.1% -3.1% -0.5%

23.2% 15.9% 18.2% -8.8%

Selling Expense

2.4% 9.2%

Operating Expense

Administrative Expense

-10.3%

-20.5%

EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization

Expenses (as % of Net Revenues)

59.0%

Average

Top 25% Profit

Top 25% Growth

60%

56.8%

50.3%

50%

40%

30%

20.2%

20%

16.8%

14.0%

2015 Best Practices Study

10%

6.2%

4.5% 4.2%

2.7% 0.5% 1.3%

0%

Agencies with Revenues Between $1,250,000 and $2,500,000

Compensation

Selling

Operating

Administrative

39

Note: See page 163 for an explanation of column headings