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2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses
Agencies with Revenues Between $2,500,000 and $5,000,000
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%
5 Profit
rowth
Selling
Operating
Administrative
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
49.8%
43.7%
56.6%
Bonds
2.5%
2.6%
5.5%
Personal Lines
25.7%
38.0%
21.8%
VAS - P&C
0.2%
0.0%
0.2%
Contingent/Bonus
10.4%
9.1%
11.1%
Group Life & Health
7.6%
3.0%
2.6%
Individual Life & Health
1.3%
1.4%
0.2%
VAS - L&H
0.0%
0.0%
0.0%
Bonus/Overrides
0.0%
0.0%
0.0%
Investments
1.1%
0.9%
1.0%
Miscellaneous
1.0%
1.1%
1.0%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.9%
1.4%
0.2%
Net Revenues
99.1%
98.6%
99.8%
Expenses (as % of Net Revenues)
Compensation
56.4%
50.4%
51.4%
Selling
4.1%
5.4%
4.4%
Operating
13.9%
13.2%
13.4%
Administrative
4.8%
7.5%
3.8%
Total Expenses
79.2%
76.5%
73.0%
Pre-Tax Profit
20.8%
23.5%
27.0%
Pro Forma Pre-Tax Profit
1
31.2%
42.6%
30.6%
Operating Pre-Tax Profit
2
8.9%
13.2%
14.9%
EBITDA
3
23.2%
25.7%
29.3%
Pro Forma EBITDA
33.5%
44.8%
32.9%
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