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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
36
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
2011 Best
Practices Study
Agencies with
Revenues Between
$1,250,000 and
$2,500,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
44.0%
50.5%
39.4%
Bonds
2.0%
5.5%
4.7%
Personal Lines
35.3%
24.4%
38.2%
Value Added Services
0.3%
0.0%
0.8%
Contingent/Bonus
9.0%
12.5%
11.7%
Group Medical
5.2%
4.5%
2.5%
All Other Group
0.9%
0.0%
0.0%
Individual L&H
1.7%
1.3%
1.8%
Bonus/Overrides
0.2%
0.0%
0.0%
Investments
0.5%
0.6%
0.1%
Miscellaneous
0.6%
0.1%
0.0%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.6%
0.0%
0.0%
Net Revenues
98.4%
100.0%
100.0%
Expenses (as % of Net Revenues)
Compensation
58.5%
44.8%
59.8%
Selling
3.4%
3.2%
3.8%
Operating
15.5%
14.5%
14.4%
Administrative
2.5%
0.4%
1.8%
Total Expenses
79.9%
62.9%
79.8%
Pre-Tax Profit
20.1%
37.1%
20.2%
Pro Forma Pre-Tax Profit
1
24.0%
43.0%
28.2%
Operating Pre-Tax Profit
2
9.2%
21.7%
7.6%
EBITDA
3
23.0%
37.9%
22.3%
Pro Forma EBITDA
27.0%
43.8%
30.3%
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