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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
132
2011 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Analysis of Agencies with Revenues Over $25,000,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
49.2%
46.6%
44.8%
Bonds
3.2%
2.6%
1.9%
Personal Lines
10.3%
19.4%
20.7%
Value Added Services
2.7%
0.0%
0.5%
Contingent/Bonus
6.2%
4.2%
5.7%
Group Medical
18.9%
14.6%
19.4%
All Other Group
4.2%
2.9%
2.6%
Individual L&H
2.3%
5.5%
0.9%
Bonus/Overrides
1.1%
0.9%
1.0%
Investments
0.8%
1.1%
1.0%
Miscellaneous
1.0%
2.2%
1.6%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.8%
2.6%
1.2%
Net Revenues
97.2%
97.4%
98.8%
Expenses (as % of Net Revenues)
Compensation
64.8%
59.2%
66.3%
Selling
3.5%
3.7%
4.4%
Operating
14.5%
14.4%
16.5%
Administrative
4.2%
0.5%
0.8%
Total Expenses
86.9%
77.7%
87.9%
Pre-Tax Profit
13.1%
22.3%
12.1%
Pro Forma Pre-Tax Profit
1
14.9%
25.3%
13.8%
Operating Pre-Tax Profit
2
4.7%
15.9%
4.4%
EBITDA
3
17.6%
24.5%
13.9%
Pro Forma EBITDA
19.4%
27.6%
15.7%
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