39 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
39
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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%
56.8%
50.3%
59.0%
4.5% 4.2%
6.2%
16.8%
14.0%
20.2%
2.7% 0.5% 1.3%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
2.0%
0.0%
0.5%
Officer Life
0.3%
0.2%
0.4%
Interest
0.4%
0.3%
0.4%
Other
0.0%
0.0%
0.0%
Total Administrative
2.7%
0.5%
1.3%
TOTAL EXPENSES
80.8%
69.0%
86.7%
PRE-TAX PROFIT (LOSS)
19.2%
31.0%
13.3%
EBITDA
22.5%
31.7%
15.7%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
12.2%
6.1%
23.2%
Selling Expense
2.4%
-3.1%
15.9%
Operating Expense
9.2%
-0.5%
18.2%
Administrative Expense
-10.3%
-20.5%
-8.8%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization