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2008 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses
Agencies with Revenues Between $10,000,000 and $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
52.5%
53.4%
53.9%
Bonds
2.0%
2.4%
1.4%
Personal Lines
12.6%
18.2%
11.8%
VAS - P&C
0.5%
0.2%
0.5%
Contingent/Bonus
9.8%
12.5%
9.6%
Group Life & Health
16.4%
8.4%
17.3%
Individual Life & Health
1.4%
1.1%
1.5%
VAS - L&H
1.0%
0.0%
0.5%
Bonus/Overrides
1.3%
0.4%
1.8%
Investments
1.8%
2.2%
1.3%
Miscellaneous
0.6%
1.3%
0.4%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
1.3%
1.0%
2.2%
Net Revenues
98.7%
99.0%
97.8%
Expenses (as % of Net Revenues)
Compensation
65.4%
58.3%
62.0%
Selling
3.0%
2.4%
2.9%
Operating
13.3%
11.1%
12.7%
Administrative
2.2%
0.8%
4.0%
Total Expenses
83.8%
72.7%
81.6%
Pre-Tax Profit
16.2%
27.3%
18.4%
Pro Forma Pre-Tax Profit
1
22.7%
38.0%
23.4%
Operating Pre-Tax Profit
2
3.2%
12.1%
5.5%
EBITDA
3
19.2%
28.8%
23.1%
Pro Forma EBITDA
4
25.0%
38.4%
25.7%
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