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2009 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses
Agencies with Revenues Between $1,250,000 and $2,500,000
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
51.9%
54.5%
59.5%
Bonds
2.2%
5.1%
2.3%
Personal Lines
24.8%
21.3%
17.6%
VAS - P&C
0.1%
0.1%
0.0%
Contingent/Bonus
11.3%
10.5%
10.0%
Group Life & Health
5.6%
4.2%
6.3%
Individual Life & Health
2.5%
1.5%
1.7%
VAS - L&H
0.4%
1.2%
0.5%
Bonus/Overrides
0.1%
0.0%
0.3%
Investments
0.9%
1.7%
1.9%
Miscellaneous
0.1%
0.0%
-0.2%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
0.4%
0.0%
0.0%
Net Revenues
99.6%
100.0%
100.0%
Expenses (as % of Net Revenues)
Compensation
55.1%
39.9%
53.2%
Selling
3.7%
3.7%
3.2%
Operating
14.2%
11.7%
12.1%
Administrative
1.8%
0.4%
0.5%
Total Expenses
74.7%
55.6%
68.9%
Pre-Tax Profit
25.3%
44.4%
31.1%
Pro Forma Pre-Tax Profit
1
31.4%
53.5%
35.6%
Operating Pre-Tax Profit
2
7.4%
15.3%
5.2%
EBITDA
3
27.7%
45.5%
32.4%
Pro Forma EBITDA
4
34.0%
54.8%
37.2%
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
*Insufficient Data