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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
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
Average
+25% Profit
+25% Growth
Revenue/Expense/Profit Summary
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
55.7%
47.2%
60.8%
Bonds
3.4%
2.9%
5.3%
Personal Lines
10.9%
21.1%
3.9%
VAS - P&C
2.2%
2.7%
1.9%
Contingent/Bonus
7.1%
7.9%
6.3%
Group Life & Health
15.1%
13.6%
14.6%
Individual Life & Health
0.7%
1.0%
0.8%
VAS - L&H
0.6%
0.0%
1.3%
Bonus/Overrides
0.4%
0.3%
0.3%
Investments
2.5%
2.1%
2.5%
Miscellaneous
1.3%
1.1%
2.3%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
3.5%
2.0%
3.4%
Net Revenues
96.5%
98.0%
96.6%
Expenses (as % of Net Revenues)
Compensation
63.6%
58.0%
64.9%
Selling
4.3%
3.6%
5.2%
Operating
14.7%
13.0%
15.4%
Administrative
2.6%
1.7%
2.0%
Total Expenses
85.2%
76.3%
87.6%
Pre-Tax Profit
14.8%
23.7%
12.4%
Pro Forma Pre-Tax Profit
1
18.2%
27.2%
16.9%
Operating Pre-Tax Profit
2
4.5%
13.1%
3.0%
EBITDA
3
18.6%
26.4%
16.1%
Pro Forma EBITDA
22.0%
29.4%
20.6%
Compensation
0%
10%
20%
30%
40%
50%
60%
70%
5 Profit
rowth
Selling
Operating
Administrative
Expenses (as % of Net Revenue)