86 / 123
AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000
86
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
57.6%
49.2%
53.9%
Benefits
8.8%
8.3%
9.2%
Total Compensation
66.4%
57.5%
63.1%
Selling Expenses
T&E/Conventions
1.4%
1.4%
1.0%
Automobile
0.8%
0.7%
0.6%
Advertising/Promotions
1.0%
1.1%
1.3%
Total Selling
3.1%
3.1%
3.0%
Operating Expenses
Occupancy
3.6%
3.4%
3.2%
Telephone
0.6%
0.6%
0.7%
Postage
0.4%
0.4%
0.4%
Supplies/Printing
0.7%
0.6%
0.8%
Dues/Subscriptions/Contributions
0.6%
0.5%
0.6%
Taxes/Licenses
0.3%
0.3%
0.4%
Insurance
1.9%
1.2%
1.1%
Professional Fees
1.0%
1.3%
1.2%
Equipment Rental/Maintenance
0.4%
0.4%
0.4%
Bad Debts
0.1%
0.1%
0.1%
Outside Services
0.6%
0.3%
0.7%
Information Technology
1.2%
1.1%
0.8%
Education/Training
0.4%
0.4%
0.3%
Miscellaneous
0.6%
0.8%
0.7%
Total Operating
12.5%
11.3%
11.4%
Administrative Expenses
Amortization
0.9%
1.0%
1.5%
Depreciation
1.2%
1.1%
1.3%
Officer-Life
0.2%
0.1%
0.1%
Interest
0.4%
0.2%
0.2%
Other
0.5%
0.4%
0.1%
Total Administrative
3.2%
2.7%
3.2%
Total Expenses
85.2%
74.7%
80.6%
Pre-Tax Profit
14.8%
25.3%
19.4%
% Net Revenue
Average
+25% Profit
+25% Growth
30%
20%
10%
0%
Compensation
Expense
Selling
Expense
Operating
Expense
Administrative
Expense
50%
40%
60%
70%