91 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
91
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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%
3.3% 3.0% 3.0%
14.3% 13.6% 13.0%
2.0% 2.3% 1.3%
62.1%
59.7%
57.9%
Average
Top 25% Profit
Top 25% Growth
Average
Top 25% Profit Top 25% Growth
ADMINISTRATIVE EXPENSES
Amortization of Intangibles
1.0%
0.9%
0.6%
Officer Life
0.3%
0.5%
0.4%
Interest
0.5%
0.8%
0.2%
Other
0.1%
0.0%
0.1%
Total Administrative
2.0%
2.3%
1.3%
TOTAL EXPENSES
81.7%
76.8%
77.0%
PRE-TAX PROFIT (LOSS)
18.3%
23.2%
23.0%
EBITDA
20.8%
25.6%
24.2%
Average
Top 25% Profit Top 25% Growth
Expense Growth Over Prior Year
Compensation Expense
7.6%
6.0%
12.1%
Selling Expense
5.5%
6.9%
11.6%
Operating Expense
3.9%
9.5%
10.6%
Administrative Expense
-5.3%
-0.2%
6.6%
Expenses
(as % of Net Revenues) — continued
Expenses
(as % of Net Revenues)
EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization