13 / 168
2015 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
13
Analysis of Agencies with Revenues Under $1,250,000
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%
51.1%
34.1%
50.9%
4.5% 4.5% 3.8%
15.7%
9.4%
19.0%
2.0% 0.1% 0.9%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
1.0%
0.0%
0.8%
Officer Life
0.2%
0.1%
0.2%
Interest
0.6%
0.0%
0.0%
Other
0.1%
0.0%
0.0%
Total Administrative
2.0%
0.1%
0.9%
TOTAL EXPENSES
73.3%
48.2%
74.6%
PRE-TAX PROFIT (LOSS)
26.7%
51.8%
25.4%
EBITDA
28.8%
51.8%
26.3%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
6.0%
-4.0%
15.4%
Selling Expense
-5.2%
13.1%
10.6%
Operating Expense
-0.9%
2.8%
10.1%
Administrative Expense
-3.5%
*
5.0%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
*Insufficient Data
EBITDA—Earnings Before Interest Taxes Depreciation and Amortization