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2009 Best Practices Study | Agencies with Revenues Less than $1,250,000 | Revenues/Expenses
Agencies with Revenues Less than $1,250,000
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
45.1%
39.4%
44.8%
Bonds
0.7%
0.8%
0.8%
Personal Lines
38.5%
47.8%
34.0%
VAS - P&C
0.2%
0.0%
0.1%
Contingent/Bonus
7.8%
4.3%
8.6%
Group Life & Health
4.6%
6.0%
5.3%
Individual Life & Health
1.8%
1.5%
3.5%
VAS - L&H
0.7%
0.0%
2.7%
Bonus/Overrides
0.0%
0.0%
0.0%
Investments
0.6%
0.2%
0.3%
Miscellaneous
0.1%
0.0%
0.0%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
0.0%
0.0%
0.0%
Net Revenues
100.0%
100.0%
100.0%
Expenses (as % of Net Revenues)
Compensation
58.9%
47.2%
57.0%
Selling
6.0%
4.5%
5.0%
Operating
17.0%
17.9%
17.2%
Administrative
1.5%
1.2%
1.4%
Total Expenses
83.4%
70.8%
80.6%
Pre-Tax Profit
16.6%
29.2%
19.4%
Pro Forma Pre-Tax Profit
1
23.0%
39.5%
25.0%
Operating Pre-Tax Profit
2
5.0%
15.9%
6.9%
EBITDA
3
18.5%
29.2%
20.1%
Pro Forma EBITDA
4
24.8%
39.4%
25.7%
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