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2007 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
Executive
Perspectives
Profile
Average
+25% Profit
+25% Growth
Revenue/Expense/Profit Summary
Compensation
0%
10%
20%
30%
40%
50%
60%
70%
5 Profit
rowth
Selling
Operating
Administrative
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
54.9%
53.2%
63.9%
Bonds
1.8%
1.5%
2.2%
Personal Lines
13.1%
17.5%
10.3%
VAS - P&C
0.8%
0.5%
1.3%
Contingent/Bonus
8.9%
10.5%
9.6%
Group Life & Health
14.7%
8.3%
7.9%
Individual Life & Health
1.6%
1.1%
1.4%
VAS - L&H
0.9%
2.7%
0.0%
Bonus/Overrides
0.8%
0.5%
0.1%
Investments
1.6%
1.6%
1.6%
Miscellaneous
0.9%
2.4%
1.7%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.3%
1.4%
2.7%
Net Revenues
98.7%
98.6%
97.3%
Expenses (as % of Net Revenues)
Compensation
63.5%
56.4%
58.0%
Selling
2.8%
2.0%
3.0%
Operating
13.0%
11.0%
12.0%
Administrative
2.3%
0.4%
2.5%
Total Expenses
81.7%
69.8%
75.5%
Pre-Tax Profit
18.3%
30.2%
24.5%
Pro Forma Pre-Tax Profit
1
23.8%
37.9%
29.8%
Operating Pre-Tax Profit
2
6.6%
17.4%
13.0%
EBITDA
3
21.6%
31.2%
27.1%
Pro Forma EBITDA
27.1%
39.0%
32.4%
1
Pre-tax Profits if
discretionary expenses
are eliminated and all
owners compensated as
employees
2
Pre-tax Profits excluding
income from
contingents, bonus and
investment income
3
EBITDA—Earnings
Before Interest Taxes
Depreciation and
Amortization