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2009 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses
Agencies with Revenues Between $2,500,000 and $5,000,000
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
49.4%
50.8%
47.0%
Bonds
2.5%
1.9%
1.6%
Personal Lines
23.4%
27.5%
22.8%
VAS - P&C
1.3%
0.2%
0.0%
Contingent/Bonus
10.9%
13.6%
15.6%
Group Life & Health
8.8%
2.7%
7.9%
Individual Life & Health
2.2%
2.4%
3.6%
VAS - L&H
0.0%
0.0%
0.0%
Bonus/Overrides
0.6%
0.0%
0.6%
Investments
0.6%
0.7%
0.5%
Miscellaneous
0.3%
0.3%
0.4%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
1.1%
0.3%
0.5%
Net Revenues
98.9%
99.7%
99.5%
Expenses (as % of Net Revenues)
Compensation
61.2%
53.3%
57.5%
Selling
4.6%
5.9%
4.8%
Operating
16.1%
14.4%
16.9%
Administrative
2.4%
2.1%
2.0%
Total Expenses
84.4%
75.8%
81.2%
Pre-Tax Profit
15.6%
24.2%
18.8%
Pro Forma Pre-Tax Profit
1
22.4%
34.3%
25.1%
Operating Pre-Tax Profit
2
2.2%
6.4%
2.0%
EBITDA
3
18.3%
26.0%
21.7%
Pro Forma EBITDA
4
25.3%
36.4%
28.4%
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