2011 Best Practices Study

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

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.7% 0.3% 0.9% 0.3% 3.1%

0.7% 0.2% 0.2% 0.1% 1.2%

2.8% 0.3% 1.7% 0.9% 5.7%

Officer Life

Interest

Other

Total Administrative

Total Expenses

86.8% 13.2% 16.7%

76.1% 23.9% 25.5%

84.1% 15.9% 21.4%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

3.4% 3.5% 2.7% 3.4%

10.1%

14.9% 11.5%

Selling Expense

8.8% 1.0% 7.9%

Operating Expense

9.9%

Administrative Expense

13.3%

Expenses (as % of Net Revenues)

2011 Best Practices Study

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

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