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2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Revenues/Expenses
Agencies with Revenues Under $1,250,000
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%
5 Profit
rowth
Selling
Operating
Administrative
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
48.5%
48.1%
54.9%
Bonds
0.6%
0.3%
0.2%
Personal Lines
35.9%
40.0%
30.7%
VAS - P&C
0.1%
0.0%
0.0%
Contingent/Bonus
7.2%
3.7%
7.3%
Group Life & Health
4.2%
3.8%
3.0%
Individual Life & Health
1.7%
2.4%
2.9%
VAS - L&H
0.6%
0.0%
0.0%
Bonus/Overrides
0.0%
0.0%
0.0%
Investments
0.6%
0.3%
0.4%
Miscellaneous
0.6%
1.4%
0.6%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.5%
0.0%
0.1%
Net Revenues
99.5%
100.0%
99.9%
Expenses (as % of Net Revenues)
Compensation
52.7%
38.7%
48.1%
Selling
5.7%
5.0%
6.2%
Operating
15.9%
11.2%
12.6%
Administrative
1.4%
0.3%
2.0%
Total Expenses
75.6%
55.1%
69.0%
Pre-Tax Profit
24.4%
44.9%
31.0%
Pro Forma Pre-Tax Profit
1
29.4%
52.7%
32.1%
Operating Pre-Tax Profit
2
16.5%
41.0%
23.3%
EBITDA
3
26.2%
43.5%
33.8%
Pro Forma EBITDA
33.0%
55.7%
35.0%
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