2008 Best Practices Study

Agencies with Revenues Over $25,000,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Expenses (continued)

Average

+25% Profit

+25% Growth

Operating Expenses Occupancy Expenditures

3.4% 0.2% 3.6% 0.4% 0.7% 1.1% 1.2% 0.5% 1.7% 0.8% 0.5% 0.9% 0.7% 0.3% 1.8% 1.1% 0.1% 0.4% 0.4% 0.9% 1.8% 0.1% 0.8% 0.1% 2.7%

2.8% 0.2% 3.0% 0.3% 0.5% 0.9% 1.1% 0.4% 1.4% 0.8% 0.4% 1.0% 0.7% 0.2% 1.3% 0.9% 0.1% 0.3% 0.2% 2.0% 1.0% 0.0% 0.0% 0.0% 1.0%

2.9% 0.1% 3.0% 0.5% 0.6% 1.0% 1.3% 0.4% 1.7% 0.8% 0.4% 0.7% 0.6% 0.2% 1.5% 1.0% 0.1% 0.4% 0.4% 0.4%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation

Total Office Equipment

IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous

Total Operating

14.3%

13.2%

12.5%

Administrative Expenses Amortization of Intangibles

1.3% 0.1% 0.4% -0.1% 80.9% 19.1% 22.1% 1.7%

Officer Life

Interest

Other

Total Administrative

Total Expenses

84.7% 15.3% 19.3%

74.2% 25.8% 28.0%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

9.1%

7.1%

16.9% 15.6% 10.4% 38.6%

Selling Expense

14.7%

19.0%

Operating Expense

9.0% 7.7%

6.6%

Administrative Expense

-0.6%

108

2008 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses