2010 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Mgmt. Perspectives

Expenses (as % of Net Revenues) — continued

Profile

Revenues

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

Expenses

1.3% 0.2% 0.9% 0.4% 2.8%

0.6% 0.2% 0.2% 1.1% 2.1%

1.7% 0.2% 2.0% 0.4% 4.4%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

79.8% 20.2% 23.4%

62.9% 37.1% 38.4%

79.4% 20.6% 24.7%

Staff Service Info

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

1.5% -8.5% 1.2% 3.4%

-0.1% -8.2% 4.5%

8.8% 3.0% 0.1%

Selling Expense

Operating Expense

Administrative Expense

-11.6%

-12.3%

Expenses (as % of Net Revenues)

2010 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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