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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
12
Analysis of Agencies with Revenues Under $1,250,000
2011 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
43.8%
38.4%
37.8%
Bonds
0.9%
0.6%
0.4%
Personal Lines
39.7%
45.1%
50.1%
Value Added Services
0.7%
0.0%
2.3%
Contingent/Bonus
6.2%
6.1%
5.4%
Group Medical
5.5%
5.2%
1.3%
All Other Group
0.2%
0.2%
0.1%
Individual L&H
2.6%
4.3%
2.2%
Bonus/Overrides
0.1%
0.1%
0.0%
Investments
0.1%
0.0%
0.0%
Miscellaneous
0.1%
0.0%
0.3%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.1%
0.1%
0.0%
Net Revenues
99.9%
99.9%
100.0%
Expenses (as % of Net Revenues)
Compensation
55.6%
43.9%
49.3%
Selling
4.7%
4.0%
5.0%
Operating
17.5%
14.6%
16.5%
Administrative
1.9%
0.6%
0.1%
Total Expenses
79.6%
63.1%
70.9%
Pre-Tax Profit
20.4%
36.9%
29.1%
Pro Forma Pre-Tax Profit
1
26.0%
44.6%
27.6%
Operating Pre-Tax Profit
2
10.8%
22.4%
12.3%
EBITDA
3
22.8%
37.5%
29.6%
Pro Forma EBITDA
28.5%
45.2%
28.2%
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