117 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
117
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Note: See page 163 for an explanation of column headings
Compensation
Selling
Operating
Administrative
0%
10%
20%
30%
40%
50%
60%
70%
3.1% 2.9% 3.5%
13.8% 13.6% 12.8%
3.0%
0.5%
3.9%
62.8%
59.7%
57.7%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
1.3%
0.2%
0.8%
Officer Life
0.2%
0.1%
0.2%
Interest
0.6%
0.2%
0.5%
Other
0.9%
-0.1%
2.4%
Total Administrative
3.0%
0.5%
3.9%
TOTAL EXPENSES
82.8%
74.6%
80.0%
PRE-TAX PROFIT (LOSS)
17.2%
25.4%
20.0%
EBITDA
20.0%
26.4%
22.0%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
9.3%
16.7%
23.0%
Selling Expense
6.5%
14.7%
8.8%
Operating Expense
6.2%
11.7%
12.9%
Administrative Expense
6.4%
6.0%
16.8%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization