2010 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Mgmt. Perspectives

Expenses (as % of Net Revenues)

Profile

Revenues

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

Expenses

52.7%

45.5%

48.2%

Profitability

Payroll: “Non-Employee” - 1099 Producers/Temp Help

5.0%

5.1%

8.4%

Total Payroll

57.7%

50.6%

56.6%

Employee Overview

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.1% 1.9% 3.6% 0.3% 8.9%

2.8% 1.4% 3.0% 0.3% 7.5%

2.9% 1.4% 2.9% 0.2% 7.4%

Producer Info

Staff Service Info

Benefits: Other

Technology

Total Benefits

Total Compensation

66.6%

58.1%

64.0%

Insurance Carriers

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

0.9% 0.8% 0.1% 0.9% 1.3% 3.1% 4.2% 0.2% 4.4% 0.3% 0.3% 0.7% 1.5% 0.3% 1.8% 0.8% 0.5% 0.8% 0.8% 0.4% 1.5% 0.8% 0.1% 0.6% 0.3% 0.3%

0.8% 0.7% 0.2% 0.9% 0.8% 2.5% 3.8% 0.2% 4.0% 0.2% 0.1% 0.3% 1.3% 0.2% 1.5% 0.7% 0.4% 0.8% 0.8% 0.3% 1.4% 1.0% 0.1% 0.5% 0.3% 0.3%

0.8% 0.9% 0.2% 1.1% 1.8% 3.6% 4.7% 0.2% 4.9% 0.4% 0.1% 0.5% 1.6% 0.2% 1.8% 1.0% 0.4% 0.8% 0.7% 0.2% 1.3% 1.1% 0.1% 0.6% 0.4% 0.5%

Appendix

Total Auto

Advertising/Promotions

Total Selling

Operating Expenses Occupancy Expenditures

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

2010 Best Practices Study

Insurance

Professional Fees

Bad Debts

Agencies with Revenues Between $5,000,000 and $10,000,000

Outside Services Education/Training

Miscellaneous

Total Operating

13.6%

12.4%

14.2%

continued on next page

104