176 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
176
Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Compensation
Selling
Operating
Administrative
0%
10%
20%
30%
40%
50%
60%
70%
Average
+25% Profit
+25% Growth
3.8% 2.9% 3.4%
13.2% 12.9% 12.2%
64.1%
58.1%
65.8%
3.5%
0.9%
3.8%
Average
+25% Profit
+25% Growth
Administrative Expenses
Amortization of Intangibles
2.4%
0.6%
2.9%
Officer Life
0.1%
0.1%
0.2%
Interest
0.3%
0.1%
0.4%
Other
0.7%
0.1%
0.3%
Total Administrative
3.5%
0.9%
3.8%
Total Expenses
84.6%
74.8%
85.3%
Pre-Tax Profit (Loss)
15.4%
25.5%
14.7%
EBITDA
19.2%
26.4%
19.0%
Average
+25% Profit
+25% Growth
Expense Growth Over Prior Year
Compensation Expense
8.4%
8.0%
12.6%
Selling Expense
8.0%
3.7%
13.1%
Operating Expense
7.7%
7.2%
8.7%
Administrative Expense
3.6%
10.5%
29.7%
Expenses
(as % of Net Revenues) —
continued
Expenses
(as % of Net Revenues)