2008 Best Practices Study

Agencies with Revenues Under $1,250,000

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

4.8% 0.2% 5.0% 0.6% 0.1% 0.7% 1.6% 0.1% 1.7% 1.4% 0.7% 1.3% 1.0% 0.3% 2.1% 0.7% 0.1% 0.3% 0.4% 0.6%

3.2% 0.1% 3.3% 0.4% 0.0% 0.4% 1.3% 0.0% 1.3% 1.8% 0.6% 1.5% 1.1% 0.3% 1.6% 0.5% 0.0% 0.2% 0.3% 0.4%

4.8% 0.1% 4.9% 1.2% 0.0% 1.2% 1.5% 0.1% 1.5% 1.3% 0.6% 1.3% 1.1% 0.3% 2.5% 0.7% 0.0% 0.1% 0.2% 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

16.2%

13.2%

16.2%

Administrative Expenses Amortization of Intangibles

0.5% 0.3% 0.6% 0.0% 1.4%

0.0% 0.3% 0.0% 0.0% 0.3%

0.1% 0.2% 0.1% 0.0% 0.5%

Officer Life

Interest

Other

Total Administrative

Total Expenses

80.7% 19.3% 21.4%

66.3% 33.7% 34.1%

73.7% 26.3% 28.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

9.0% 3.5% 1.2% 3.7%

8.5%

17.9%

Selling Expense

-2.1%

5.3%

Operating Expense

9.2%

16.4%

Administrative Expense

-1.7%

-5.9%

8 2008 Best Practices Study | Agencies with Revenues Under $1,250,000 | Revenues/Expenses