2010 Best Practices Study

Analysis of Agencies with Revenues Over $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% 0.1% 1.1% 1.1% 4.1%

0.8% 0.0% 0.1% 0.1% 1.0%

0.7% 0.1% 0.6% 1.3% 2.7%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

87.4% 12.6% 16.9%

79.2% 20.8% 23.2%

90.3%

Staff Service Info

Pre-Tax Profit (Loss)

9.7%

Technology

EBITDA

12.8%

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

2.5% -9.6% -0.5% 11.1%

2.5%

7.6% -4.7% 1.8% 31.0%

Selling Expense

-10.6%

Operating Expense

0.0%

Administrative Expense

31.1%

Expenses (as % of Net Revenues)

2010 Best Practices Study

Agencies with Revenues Over $25,000,000

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