145 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
145
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
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
50.2%
55.9%
48.5%
Bonds
1.6%
1.0%
4.0%
Personal Lines
15.1%
11.3%
20.0%
VAS - P&C
1.0%
0.4%
1.4%
Contingent/Bonus
5.9%
6.8%
7.6%
Group Medical
16.1%
15.9%
13.1%
All Other Group
4.9%
3.2%
2.8%
Individual L&H
2.9%
3.7%
0.7%
Bonus/Overrides
1.1%
0.8%
0.5%
Investments
0.6%
0.7%
0.1%
Miscellaneous
0.6%
0.2%
1.2%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.6%
2.7%
0.3%
Net Revenues
98.4%
97.3%
99.7%
Expenses (as % of Net Revenues)
Compensation
66.7%
63.1%
65.7%
Selling
3.4%
3.4%
3.9%
Operating
13.7%
12.7%
14.1%
Administrative
3.2%
2.2%
3.3%
Total Expenses
87.0%
81.5%
87.0%
Average
+25% Profit
+25% Growth
Pre-Tax Profit
13.0%
18.5%
13.0%
Pro Forma Pre-Tax Profit
1
17.3%
26.5%
15.4%
Operating Pre-Tax Profit
2
5.9%
10.6%
4.8%
EBITDA
3
15.8%
21.2%
16.3%
Pro Forma EBITDA
20.1%
29.2%
18.7%
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
Profit/Loss Summary
Profit/Loss
(as % of Net Revenues)