17 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
17
Analysis of Agencies with Revenues Under $1,250,000
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
42.0%
35.7%
38.9%
Bonds
0.7%
0.4%
0.7%
Personal Lines
46.0%
54.2%
46.3%
VAS - P&C
0.4%
0.0%
0.0%
Contingent/Bonus
5.5%
5.5%
6.4%
Group Medical
2.3%
0.8%
3.0%
All Other Group
0.4%
0.1%
0.1%
Individual Life & Health
2.0%
2.8%
3.2%
Bonus/Overrides
0.1%
0.0%
0.0%
Investments
0.1%
0.0%
0.0%
Miscellaneous
0.4%
0.4%
1.3%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.3%
0.0%
0.0%
Net Revenues
99.7%
100.0%
100.0%
Expenses (as % of Net Revenues)
Compensation
52.2%
43.2%
47.1%
Selling
5.5%
5.6%
5.7%
Operating
17.4%
13.6%
19.5%
Administrative
1.7%
-1.0%
1.9%
Total Expenses
76.9%
61.4%
74.1%
Average
+25% Profit
+25% Growth
Pre-Tax Profit
23.1%
38.6%
25.9%
Pro Forma Pre-Tax Profit
1
27.6%
43.7%
30.9%
Operating Pre-Tax Profit
2
17.4%
33.2%
19.5%
EBITDA
3
25.8%
38.9%
28.9%
Pro Forma EBITDA
30.3%
43.9%
33.9%
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)