143 / 168
2015 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
143
Analysis of Agencies with Revenues Over $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%
4.2% 3.6% 4.7%
13.4%
10.9% 12.0%
3.2% 1.9% 1.8%
65.5%
68.5%
59.0%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
1.7%
0.7%
0.8%
Officer Life
0.1%
0.1%
0.2%
Interest
0.4%
0.2%
0.7%
Other
1.0%
0.9%
0.1%
Total Administrative
3.2%
1.9%
1.8%
TOTAL EXPENSES
86.4%
75.5%
86.9%
PRE-TAX PROFIT (LOSS)
13.6%
24.5%
13.1%
EBITDA
16.9%
26.4%
15.8%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
9.9%
7.4%
14.9%
Selling Expense
10.5%
5.5%
16.6%
Operating Expense
10.8%
5.7%
17.9%
Administrative Expense
20.1%
36.3%
22.2%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization