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2008 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses
Agencies with Revenues Between $2,500,000 and $5,000,000
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
51.8%
46.7%
51.2%
Bonds
2.1%
2.2%
0.2%
Personal Lines
23.0%
30.0%
27.8%
VAS - P&C
0.2%
0.2%
0.2%
Contingent/Bonus
10.4%
15.8%
12.9%
Group Life & Health
9.1%
3.0%
4.5%
Individual Life & Health
1.7%
1.0%
2.0%
VAS - L&H
0.0%
0.0%
0.0%
Bonus/Overrides
0.4%
0.0%
0.0%
Investments
1.2%
0.7%
0.9%
Miscellaneous
0.2%
0.3%
0.2%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
0.8%
0.0%
0.5%
Net Revenues
99.2%
100.0%
99.5%
Expenses (as % of Net Revenues)
Compensation
60.0%
50.3%
54.0%
Selling
4.4%
4.9%
4.8%
Operating
14.6%
15.5%
15.2%
Administrative
2.3%
1.7%
2.4%
Total Expenses
81.3%
72.4%
76.3%
Pre-Tax Profit
18.7%
27.6%
23.7%
Pro Forma Pre-Tax Profit
1
26.6%
41.1%
32.1%
Operating Pre-Tax Profit
2
5.8%
8.1%
9.8%
EBITDA
3
21.1%
29.8%
26.7%
Pro Forma EBITDA
4
28.4%
42.2%
33.0%
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