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2009 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses
Agencies with Revenues Between $10,000,000 and $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
52.7%
48.0%
43.8%
Bonds
1.9%
3.1%
1.4%
Personal Lines
12.4%
19.6%
19.9%
VAS - P&C
0.6%
0.8%
0.7%
Contingent/Bonus
10.1%
14.6%
12.3%
Group Life & Health
17.0%
9.4%
15.6%
Individual Life & Health
1.6%
1.8%
2.6%
VAS - L&H
0.2%
0.0%
0.4%
Bonus/Overrides
1.2%
0.1%
2.1%
Investments
1.2%
1.4%
1.0%
Miscellaneous
1.3%
1.3%
0.1%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
1.2%
2.6%
2.2%
Net Revenues
98.8%
97.4%
97.8%
Expenses (as % of Net Revenues)
Compensation
66.5%
58.2%
61.6%
Selling
2.9%
2.9%
3.4%
Operating
13.3%
11.6%
11.9%
Administrative
2.4%
1.0%
2.0%
Total Expenses
85.0%
73.7%
78.9%
Pre-Tax Profit
15.0%
26.3%
21.1%
Pro Forma Pre-Tax Profit
1
18.8%
33.9%
26.8%
Operating Pre-Tax Profit
2
2.3%
10.0%
5.4%
EBITDA
3
18.2%
27.9%
23.4%
Pro Forma EBITDA
4
20.4%
31.8%
23.6%
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