143 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
143
Analysis of Agencies with Revenues Over $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
Administrative Expenses
Amortization of Intangibles
1.6%
0.4%
2.0%
Officer Life
0.1%
0.0%
0.2%
Interest
0.4%
0.1%
0.5%
Other
0.8%
0.0%
0.4%
Total Administrative
2.9%
0.6%
3.0%
Total Expenses
85.2%
75.0%
85.9%
Pre-Tax Profit (Loss)
14.8%
25.0%
14.1%
EBITDA
17.8%
26.5%
17.7%
Average
+25% Profit
+25% Growth
Expense Growth Over Prior Year
Compensation Expense
9.0%
7.3%
13.8%
Selling Expense
11.9%
8.9%
16.7%
Operating Expense
8.8%
8.2%
13.9%
Administrative Expense
7.3%
0.2%
24.6%
Expenses
(as % of Net Revenues) —
continued
Expenses
(as % of Net Revenues)
Compensation
Selling
Operating
Administrative
0%
10%
20%
30%
40%
50%
60%
70%
Average
+25% Profit
+25% Growth
4.2% 3.8% 4.8%
13.3% 12.0% 13.7%
2.9% 0.6%
3.0%
64.8% 64.4%
58.6%