2010 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Mgmt. Perspectives

Expenses (as % of Net Revenues) — continued

Profile

Revenues

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

Expenses

1.0% 0.2% 1.1% 0.3% 2.7%

0.2% 0.2% 0.2% 0.1% 0.7%

0.3% 0.3% 0.4% 0.4% 1.4%

Profitability

Officer Life

Interest

Employee Overview

Other

Producer Info

Total Administrative

Total Expenses

84.4% 15.6% 18.9%

73.8% 26.2% 27.3%

79.7% 20.3% 21.5%

Staff Service Info

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

0.5% -5.8% -0.8% -5.4%

-0.2%

-0.7% -8.2% -4.7%

Selling Expense

-12.0%

Operating Expense

-6.0% 8.4%

Administrative Expense

-12.6%

Expenses (as % of Net Revenues)

2010 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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