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2008 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Profile
Revenue/Expense/Profit Summary
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
56.0%
47.7%
63.7%
Bonds
3.4%
2.0%
4.6%
Personal Lines
10.9%
23.5%
6.7%
VAS - P&C
1.4%
0.1%
1.5%
Contingent/Bonus
7.1%
8.6%
6.2%
Group Life & Health
15.8%
13.4%
11.9%
Individual Life & Health
0.8%
0.8%
0.9%
VAS - L&H
0.5%
0.0%
0.2%
Bonus/Overrides
0.5%
0.4%
0.5%
Investments
2.5%
2.7%
3.2%
Miscellaneous
1.0%
0.9%
0.6%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
3.8%
2.3%
4.8%
Net Revenues
96.2%
97.7%
95.2%
Expenses (as % of Net Revenues)
Compensation
63.3%
56.4%
62.5%
Selling
4.3%
3.6%
4.2%
Operating
14.3%
13.2%
12.5%
Administrative
2.7%
1.0%
1.7%
Total Expenses
84.7%
74.2%
80.9%
Pre-Tax Profit
15.3%
25.8%
19.1%
Pro Forma Pre-Tax Profit
1
17.5%
27.3%
20.9%
Operating Pre-Tax Profit
2
4.9%
13.9%
8.8%
EBITDA
3
19.3%
28.0%
22.1%
Pro Forma EBITDA
4
21.5%
29.5%
23.8%
1
Pre-tax Profits if
discretionary expenses
are eliminated (e.g.
certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded
2
Pre-tax Profits excluding
income from
contingents, bonus and
investment income
3
EBITDA—Earnings
Before Interest Taxes
Depreciation and
Amortization
4
EBITDA if discretionary
expenses are eliminated
(e.g. certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded