2010 Best Practices Study

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

Mgmt. Perspectives

Expenses (as % of Net Revenues) — continued

Profile

Revenues

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

Expenses

1.6% 0.2% 0.7% 0.6% 3.2%

0.6% 0.3% 0.8% 0.2% 1.9%

0.9% 0.3% 0.9% 0.2% 2.3%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

86.5% 13.5% 16.8%

75.0% 25.0% 27.1%

84.1% 15.9% 18.3%

Staff Service Info

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

1.5% -5.3% 0.5% 0.4%

-3.0%

10.8% -1.5%

Selling Expense

-10.7%

Operating Expense

-2.4% 1.5%

7.7% 8.9%

Administrative Expense

Expenses (as % of Net Revenues)

2010 Best Practices Study

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

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