65 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
65
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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%
56.9%
47.9%
57.9%
4.0% 4.1% 4.0%
14.0%
11.4% 13.3%
2.9% 3.6% 2.3%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
1.6%
2.0%
1.0%
Officer Life
0.2%
0.0%
0.2%
Interest
0.6%
0.6%
0.1%
Other
0.6%
0.9%
0.9%
Total Administrative
2.9%
3.6%
2.3%
TOTAL EXPENSES
77.8%
66.9%
77.4%
PRE-TAX PROFIT (LOSS)
22.2%
33.1%
22.6%
EBITDA
25.2%
36.4%
24.4%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
8.0%
0.9%
14.8%
Selling Expense
0.1%
-3.6%
2.6%
Operating Expense
7.7%
4.0%
15.0%
Administrative Expense
-5.9%
-10.2%
0.4%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization