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2008 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses
Agencies with Revenues Between $5,000,000 and $10,000,000
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
49.7%
42.7%
40.6%
Bonds
1.2%
0.2%
0.2%
Personal Lines
22.1%
31.1%
31.1%
VAS - P&C
1.6%
5.9%
0.0%
Contingent/Bonus
8.3%
8.7%
8.1%
Group Life & Health
11.5%
8.7%
9.7%
Individual Life & Health
3.2%
0.9%
7.6%
VAS - L&H
0.1%
0.0%
0.3%
Bonus/Overrides
0.2%
0.2%
0.2%
Investments
1.7%
1.5%
1.8%
Miscellaneous
0.5%
0.1%
0.4%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
1.4%
0.0%
0.5%
Net Revenues
98.6%
100.0%
99.5%
Expenses (as % of Net Revenues)
Compensation
63.2%
60.2%
63.2%
Selling
3.2%
2.5%
3.3%
Operating
12.6%
10.9%
13.2%
Administrative
2.9%
0.9%
4.0%
Total Expenses
82.0%
74.5%
83.7%
Pre-Tax Profit
18.0%
25.5%
16.3%
Pro Forma Pre-Tax Profit
1
22.0%
32.1%
21.4%
Operating Pre-Tax Profit
2
6.5%
11.1%
6.2%
EBITDA
3
20.7%
26.7%
18.1%
Pro Forma EBITDA
4
24.7%
33.5%
23.1%
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