136 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
136
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
50.3%
50.6%
43.9%
Bonds
2.2%
2.1%
1.4%
Personal Lines
13.9%
14.6%
19.1%
VAS - P&C
1.0%
1.3%
2.1%
Contingent/Bonus
8.7%
9.9%
9.1%
Group Life & Health
14.7%
11.1%
14.2%
Individual Life & Health
4.6%
4.7%
5.4%
VAS - L&H
1.5%
2.9%
2.3%
Bonus/Overrides
1.7%
1.0%
1.1%
Investments
0.6%
0.7%
0.3%
Miscellaneous
0.9%
1.0%
1.0%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.6%
3.1%
2.4%
Net Revenues
98.4%
96.9%
97.6%
Expenses (as % of Net Revenues)
Compensation
67.3%
59.6%
64.2%
Selling
3.0%
2.8%
3.5%
Operating
13.7%
11.4%
12.1%
Administrative
3.6%
2.0%
5.7%
Total Expenses
87.7%
75.7%
85.6%
Pre-Tax Profit
12.3%
24.3%
14.4%
Pro Forma Pre-Tax Profit
1
15.6%
27.7%
17.6%
Operating Pre-Tax Profit
2
0.2%
9.8%
3.6%
EBITDA
3
16.3%
27.0%
19.7%
Pro Forma EBITDA
19.6%
30.4%
22.9%
1 Pre-tax Profits if discretionary expenses are
eliminated and all owners compensated as
employees
2 Pre-tax Profits excluding contingents, bonus
and investment income
3 EBITDA—Earnings Before Interest Taxes
Depreciation and Amortization
Profit/Loss Summary
Profit/Loss
(as % of Net Revenues)
Profitability