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2009 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Profile
Revenue/Expense/Profit Summary
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
53.7%
51.1%
47.2%
Bonds
3.8%
4.0%
5.3%
Personal Lines
9.9%
15.6%
3.5%
VAS - P&C
1.3%
0.2%
0.4%
Contingent/Bonus
7.5%
6.6%
7.3%
Group Life & Health
19.3%
15.2%
29.1%
Individual Life & Health
0.6%
0.9%
0.4%
VAS - L&H
0.8%
0.0%
1.7%
Bonus/Overrides
0.9%
0.7%
2.0%
Investments
1.5%
4.0%
2.7%
Miscellaneous
0.8%
1.7%
0.4%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
2.8%
1.4%
1.7%
Net Revenues
97.2%
98.6%
98.3%
Expenses (as % of Net Revenues)
Compensation
64.3%
56.0%
64.1%
Selling
4.2%
3.9%
4.8%
Operating
14.8%
15.2%
16.7%
Administrative
3.0%
1.4%
1.4%
Total Expenses
86.3%
76.6%
87.0%
Pre-Tax Profit
13.7%
23.4%
13.0%
Pro Forma Pre-Tax Profit
1
16.4%
26.6%
18.5%
Operating Pre-Tax Profit
2
3.5%
11.9%
0.7%
EBITDA
3
17.9%
26.3%
15.8%
Pro Forma EBITDA
4
20.7%
29.4%
21.3%
1
Pre-tax Profits if
discretionary expenses
are eliminated (e.g.
certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded
2
Pre-tax Profits excluding
income from
contingents, bonus and
investment income
3
EBITDA—Earnings
Before Interest Taxes
Depreciation and
Amortization
4
EBITDA if discretionary
expenses are eliminated
(e.g. certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded