49 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
49
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
46.5%
44.8%
42.5%
Bonds
2.9%
0.8%
5.6%
Personal Lines
33.4%
32.8%
31.6%
VAS - P&C
0.1%
0.1%
0.0%
Contingent/Bonus
8.4%
10.5%
10.6%
Group Medical
4.7%
4.8%
6.9%
All Other Group
0.5%
0.2%
0.2%
Individual Life & Health
2.4%
5.3%
1.8%
Bonus/Overrides
0.4%
0.1%
0.0%
Investments
0.2%
0.2%
0.1%
Miscellaneous
0.5%
0.2%
0.6%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.2%
0.0%
3.4%
Net Revenues
98.8%
100.0%
96.6%
Expenses (as % of Net Revenues)
Compensation
56.6%
43.2%
56.3%
Selling
3.8%
4.0%
4.3%
Operating
15.7%
11.7%
16.3%
Administrative
2.2%
0.9%
2.6%
Total Expenses
78.2%
59.7%
79.5%
Average
+25% Profit
+25% Growth
Pre-Tax Profit
21.8%
40.3%
20.5%
Pro Forma Pre-Tax Profit
1
28.3%
45.4%
30.6%
Operating Pre-Tax Profit
2
12.8%
29.6%
9.5%
EBITDA
3
24.6%
41.4%
24.3%
Pro Forma EBITDA
31.1%
46.5%
34.3%
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)