113 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
113
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Mgmt. Perspectives
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
49.8%
46.8%
52.5%
Bonds
1.5%
0.2%
0.9%
Personal Lines
23.2%
28.9%
22.3%
VAS - P&C
1.6%
4.9%
0.7%
Contingent/Bonus
7.0%
8.0%
6.6%
Group Medical
10.7%
6.2%
10.9%
All Other Group
2.5%
1.9%
1.5%
Individual L&H
1.4%
1.3%
0.9%
Bonus/Overrides
0.9%
0.2%
0.6%
Investments
0.6%
1.1%
1.2%
Miscellaneous
0.8%
0.5%
2.0%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.6%
0.0%
0.5%
Net Revenues
99.4%
100.0%
99.5%
Expenses (as % of Net Revenues)
Compensation
61.8%
53.6%
64.3%
Selling
3.3%
2.9%
3.5%
Operating
14.2%
13.0%
13.3%
Administrative
3.2%
2.1%
2.8%
Total Expenses
82.5%
71.6%
83.9%
Average
+25% Profit
+25% Growth
Pre-Tax Profit
17.5%
28.4%
16.1%
Pro Forma Pre-Tax Profit
1
21.7%
37.2%
18.3%
Operating Pre-Tax Profit
2
9.6%
20.2%
8.9%
EBITDA
3
21.0%
30.6%
19.3%
Pro Forma EBITDA
25.2%
39.4%
21.6%
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
Profit/Loss Summary
Profit/Loss
(as % of Net Revenues)