118 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
118
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
50.3%
47.6%
38.4%
Bonds
1.8%
0.3%
3.7%
Personal Lines
15.2%
14.2%
15.6%
VAS - P&C
0.8%
0.1%
1.2%
Contingent/Bonus
6.8%
5.9%
6.2%
Group Medical
15.1%
19.1%
20.2%
All Other Group
5.0%
5.8%
5.9%
Individual Life & Health
2.9%
4.6%
6.3%
Bonus/Overrides
1.3%
1.9%
1.5%
Investments
0.4%
0.4%
0.4%
Miscellaneous
0.4%
0.2%
0.5%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.7%
0.6%
0.5%
Net Revenues
98.3%
99.4%
99.5%
Expenses (as % of Net Revenues)
Compensation
64.7%
58.5%
63.8%
Selling
3.2%
2.7%
3.5%
Operating
14.2%
14.5%
16.0%
Administrative
2.6%
0.8%
2.7%
Total Expenses
84.6%
76.4%
86.0%
Average
+25% Profit
+25% Growth
Pre-Tax Profit
15.4%
23.6%
14.0%
Pro Forma Pre-Tax Profit
1
19.2%
27.1%
17.5%
Operating Pre-Tax Profit
2
7.6%
17.0%
6.6%
EBITDA
3
17.9%
25.1%
17.2%
Pro Forma EBITDA
4
21.7%
28.5%
20.7%
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
4 EBITDA if discretionary expenses
are eliminated and all owners
compensated as employees
Profit/Loss Summary
Profit/Loss
(as % of Net Revenues)