102 / 123
AGENCIES WITH REVENUES OVER $25,000,000
102
2006
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
2006 Best Practices Study
EXPENSE ANALYSIS
A.
Expenses Analysis (as a % of Net Revenues)
Average
+25%
Profit
+25%
Growth
Compensation Expense
Total Payroll
54.6%
54.3%
55.9%
Benefits
10.5%
10.7%
10.2%
Total Compensation
65.2%
65.0%
66.1%
Selling Expenses
T&E/Conventions
2.3%
1.4%
3.0%
Automobile
1.0%
0.8%
1.1%
Advertising/Promotions
1.1%
1.2%
1.3%
Total Selling
4.4%
3.4%
5.3%
Operating Expenses
Occupancy
3.6%
3.1%
3.1%
Telephone
0.7%
0.6%
0.7%
Postage
0.5%
0.4%
0.4%
Supplies/Printing
1.2%
1.4%
1.0%
Dues/Subscriptions/Contributions
0.9%
0.8%
1.0%
Taxes/Licenses
0.3%
0.2%
0.3%
Insurance
2.2%
2.0%
2.6%
Professional Fees
1.2%
0.9%
1.6%
Equipment Rental/Maintenance
0.5%
0.6%
0.7%
Bad Debts
0.1%
0.0%
0.1%
Outside Services
0.8%
0.8%
0.8%
Information Technology
1.4%
0.7%
1.0%
Education/Training
0.3%
0.2%
0.4%
Miscellaneous
0.3%
0.1%
0.5%
Total Operating
13.8%
11.7%
14.1%
Administrative Expenses
Amortization
1.1%
0.6%
0.9%
Depreciation
1.5%
1.2%
1.6%
Officer-Life
0.1%
0.1%
0.1%
Interest
0.7%
0.3%
0.5%
Other
0.1%
-0.2%
-0.1%
Total Administrative
3.5%
2.0%
3.1%
Total Expenses
86.8%
82.1%
88.7%
Pre-Tax Profit
13.2%
17.9%
11.3%
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%
70%