80 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
80
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
3.7% 2.3% 2.6%
15.1%
11.2%
12.9%
59.6%
50.6%
63.4%
2.7%
1.1% 1.4%
Average
+25% Profit
+25% Growth
Administrative Expenses
Amortization of Intangibles
1.5%
0.4%
0.5%
Officer Life
0.2%
0.1%
0.3%
Interest
0.8%
0.4%
0.4%
Other
0.2%
0.1%
0.2%
Total Administrative
2.7%
1.1%
1.4%
Total Expenses
81.1%
65.2%
80.3%
Pre-Tax Profit (Loss)
18.9%
34.8%
19.7%
EBITDA
22.4%
36.2%
21.1%
Average
+25% Profit
+25% Growth
Expense Growth Over Prior Year
Compensation Expense
5.8%
7.4%
11.1%
Selling Expense
3.1%
-2.9%
3.9%
Operating Expense
6.0%
3.6%
9.9%
Administrative Expense
-0.8%
-2.5%
13.3%
Expenses
(as % of Net Revenues) —
continued
Expenses
(as % of Net Revenues)