2010 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Mgmt. Perspectives

Expenses (as % of Net Revenues) — continued

Profile

Revenues

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

Expenses

0.6% 0.2% 0.8% 0.1% 1.7%

0.1% 0.3% 0.3% 0.1% 0.9%

0.0% 0.0% 1.0% 0.2% 1.2%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

78.5% 21.5% 23.9%

63.5% 36.5% 36.9%

76.4% 23.6% 25.3%

Staff Service Info

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

4.1% -7.7% 1.3% -0.5%

4.3%

10.6%

Selling Expense

-15.3%

5.0% 8.1%

Operating Expense

-6.4%

Administrative Expense

-12.1%

-16.5%

Expenses (as % of Net Revenues)

2010 Best Practices Study

Agencies with Revenues Under $1,250,000

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