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2009 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses
Agencies with Revenues Between $5,000,000 and $10,000,000
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
47.1%
47.0%
42.3%
Bonds
1.2%
0.2%
0.3%
Personal Lines
25.2%
31.2%
15.2%
VAS - P&C
0.2%
0.2%
0.2%
Contingent/Bonus
8.0%
8.3%
8.0%
Group Life & Health
12.7%
9.9%
23.7%
Individual Life & Health
3.7%
1.0%
8.0%
VAS - L&H
0.1%
0.0%
0.2%
Bonus/Overrides
0.4%
0.5%
1.1%
Investments
1.1%
1.5%
1.0%
Miscellaneous
0.3%
0.0%
0.0%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
1.1%
0.1%
3.1%
Net Revenues
98.9%
99.9%
96.9%
Expenses (as % of Net Revenues)
Compensation
65.0%
62.0%
70.8%
Selling
3.1%
2.5%
3.5%
Operating
13.5%
11.7%
12.8%
Administrative
3.2%
1.3%
2.6%
Total Expenses
84.8%
77.4%
89.7%
Pre-Tax Profit
15.2%
22.6%
10.3%
Pro Forma Pre-Tax Profit
1
20.5%
32.7%
19.6%
Operating Pre-Tax Profit
2
5.6%
12.3%
-0.1%
EBITDA
3
17.6%
23.5%
13.1%
Pro Forma EBITDA
4
22.9%
33.7%
22.4%
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