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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
132
Analysis of Agencies with Revenues Over $25,000,000
2012 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
49.7%
45.0%
39.2%
Bonds
3.2%
0.9%
1.8%
Personal Lines
7.0%
6.1%
3.1%
Value Added Services
1.9%
0.1%
0.7%
Contingent/Bonus
5.4%
3.0%
5.4%
Group Medical
18.1%
11.8%
14.5%
All Other Group
6.3%
6.2%
8.3%
Individual L&H
1.2%
1.2%
1.5%
Bonus/Overrides
1.3%
1.4%
2.2%
Investments
0.6%
0.5%
0.3%
Miscellaneous
1.0%
3.1%
1.4%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
3.5%
2.7%
2.4%
Net Revenues
96.5%
97.3%
97.6%
Expenses (as % of Net Revenues)
Compensation
65.3%
57.4%
64.9%
Selling
4.1%
4.2%
3.9%
Operating
14.3%
14.6%
15.0%
Administrative
3.6%
0.8%
0.9%
Total Expenses
87.3%
77.1%
84.6%
Pre-Tax Profit
12.7%
22.9%
15.4%
Pro Forma Pre-Tax Profit
1
14.6%
22.9%
17.6%
Operating Pre-Tax Profit
2
5.9%
18.3%
7.6%
EBITDA
3
16.5%
24.8%
17.0%
Pro Forma EBITDA
18.4%
24.8%
19.2%
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