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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
12
Analysis of Agencies with Revenues Under $1,250,000
2012 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
43.6%
29.2%
37.7%
Bonds
1.0%
0.5%
0.8%
Personal Lines
33.6%
37.3%
31.2%
Value Added Services
0.9%
0.0%
0.0%
Contingent/Bonus
6.0%
4.8%
7.7%
Group Medical
5.0%
6.8%
6.2%
All Other Group
0.2%
0.1%
0.1%
Individual L&H
3.3%
8.4%
8.6%
Bonus/Overrides
0.1%
0.1%
0.1%
Investments
0.1%
0.0%
0.0%
Miscellaneous
0.1%
0.0%
0.1%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
0.2%
0.2%
0.0%
Net Revenues
99.8%
99.8%
100.0%
Expenses (as % of Net Revenues)
Compensation
54.5%
40.8%
48.6%
Selling
5.1%
5.7%
7.4%
Operating
18.0%
16.3%
19.4%
Administrative
2.1%
1.0%
2.0%
Total Expenses
79.7%
63.7%
77.4%
Pre-Tax Profit
20.3%
36.3%
22.6%
Pro Forma Pre-Tax Profit
1
23.6%
40.9%
28.6%
Operating Pre-Tax Profit
2
11.0%
23.3%
11.3%
EBITDA
3
22.8%
37.2%
25.0%
Pro Forma EBITDA
26.2%
42.0%
30.9%
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)
Profitability