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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
108
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
48.6%
50.0%
40.0%
Bonds
2.0%
2.8%
0.9%
Personal Lines
16.4%
21.5%
20.8%
Value Added Services
0.6%
0.9%
1.0%
Contingent/Bonus
6.7%
7.3%
6.4%
Group Medical
14.2%
9.6%
14.0%
All Other Group
5.7%
2.9%
8.2%
Individual L&H
2.7%
2.2%
6.6%
Bonus/Overrides
1.6%
1.3%
1.0%
Investments
0.6%
0.5%
0.5%
Miscellaneous
0.9%
1.1%
0.6%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.0%
0.8%
0.3%
Net Revenues
98.0%
99.2%
99.7%
Expenses (as % of Net Revenues)
Compensation
67.8%
62.6%
67.1%
Selling
3.4%
3.2%
3.8%
Operating
13.5%
11.0%
13.9%
Administrative
3.4%
0.8%
3.5%
Total Expenses
88.1%
77.6%
88.3%
Pre-Tax Profit
11.9%
22.4%
11.7%
Pro Forma Pre-Tax Profit
1
14.5%
25.0%
15.3%
Operating Pre-Tax Profit
2
3.4%
13.7%
4.3%
EBITDA
3
15.1%
23.3%
13.4%
Pro Forma EBITDA
17.7%
25.9%
17.0%
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)
Profitability