2010 Best Practices Study

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

Mgmt. Perspectives

Expenses (as % of Net Revenues) — continued

Profile

Revenues

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

Expenses

1.8% 0.3% 1.1% 0.5% 3.6%

0.7% 0.1% 1.0% 0.2% 2.0%

2.8% 0.2% 1.5% 1.3% 5.7%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

87.7% 12.3% 16.3%

75.7% 24.3% 27.0%

85.6% 14.4% 19.7%

Staff Service Info

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

2.5% -5.9% 2.8% -5.6%

5.5% -9.6% 6.5% -4.0%

12.8%

Selling Expense

7.9% 9.1%

Operating Expense

Administrative Expense

-18.4%

Expenses (as % of Net Revenues)

2010 Best Practices Study

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

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