36 / 155
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
36
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
2012 Best
Practices Study
Agencies with
Revenues Between
$1,250,000 and
$2,500,000
Average
+25% Profit
+25% Growth
Revenues (as % of Gross Revenue)
Commercial Lines
42.7%
54.9%
42.7%
Bonds
1.8%
4.6%
0.4%
Personal Lines
36.7%
19.9%
41.5%
Value Added Services
0.1%
0.0%
0.0%
Contingent/Bonus
8.2%
12.3%
9.2%
Group Medical
5.8%
6.7%
4.1%
All Other Group
0.8%
0.0%
0.0%
Individual L&H
2.3%
1.2%
0.5%
Bonus/Overrides
0.3%
0.0%
0.0%
Investments
0.6%
0.4%
1.2%
Miscellaneous
0.7%
0.0%
0.5%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.7%
0.0%
3.9%
Net Revenues
98.3%
100.0%
96.1%
Expenses (as % of Net Revenues)
Compensation
58.2%
41.1%
52.2%
Selling
3.5%
4.1%
2.8%
Operating
15.4%
15.1%
13.2%
Administrative
2.1%
0.6%
2.1%
Total Expenses
79.1%
61.0%
70.3%
Pre-Tax Profit
20.9%
39.0%
29.7%
Pro Forma Pre-Tax Profit
1
25.0%
41.8%
30.4%
Operating Pre-Tax Profit
2
12.2%
26.8%
20.1%
EBITDA
3
23.3%
39.9%
30.7%
Pro Forma EBITDA
27.4%
42.6%
31.4%
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