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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
108
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
49.5%
41.4%
48.7%
Bonds
2.3%
1.9%
2.4%
Personal Lines
14.6%
23.3%
13.1%
Value Added Services
0.7%
1.0%
1.6%
Contingent/Bonus
7.8%
8.4%
7.1%
Group Medical
14.5%
12.9%
13.6%
All Other Group
5.9%
4.3%
7.5%
Individual L&H
1.7%
3.2%
2.5%
Bonus/Overrides
1.6%
2.5%
1.8%
Investments
0.8%
0.6%
1.0%
Miscellaneous
0.7%
0.4%
0.8%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.0%
0.5%
2.2%
Net Revenues
98.0%
99.5%
97.8%
Expenses (as % of Net Revenues)
Compensation
67.0%
60.7%
62.7%
Selling
3.3%
3.4%
3.2%
Operating
13.5%
10.8%
12.6%
Administrative
3.1%
1.2%
5.7%
Total Expenses
86.8%
76.1%
84.1%
Pre-Tax Profit
13.2%
23.9%
15.9%
Pro Forma Pre-Tax Profit
1
16.1%
28.1%
20.2%
Operating Pre-Tax Profit
2
1.8%
9.5%
2.1%
EBITDA
3
16.7%
25.5%
21.4%
Pro Forma EBITDA
19.7%
29.6%
25.8%
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