2014 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks

Expenses (as % of Net Revenues)

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

54.9%

50.6%

51.5%

Profitability

Payroll: “Non-Employee” - 1099 Producers/Temp Help

1.3%

0.5%

3.8%

Employee Overview

Total Payroll

56.2%

51.1%

55.3%

Benefits: Payroll Taxes Benefits: Retirement

3.3% 1.6% 3.4% 0.2% 8.5%

2.6% 1.3% 3.2% 0.2% 7.4%

3.1% 2.0% 3.3% 0.1% 8.5%

Producer Info

Service Staff Info

Benefits: Insurance

Benefits: Other

Technology

Total Benefits

Insurance Carriers

Total Compensation

64.7%

58.5%

63.8%

Appendix

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.4% 0.6% 0.1% 0.6% 1.2%

1.3% 0.4% 0.0% 0.4% 1.0%

1.6% 0.6% 0.1% 0.7% 1.2%

Total Auto

Advertising/Promotions

Total Selling

3.2%

2.7%

3.5%

Operating Expenses Occupancy Expenditures

3.7% 0.2% 3.9% 0.4% 0.4% 0.8% 2.1% 0.3% 2.3% 0.6% 0.3% 0.7% 0.7% 0.4% 1.2% 1.3% 0.2% 0.9% 0.3% 0.6%

3.4% 0.1% 3.5% 0.2% 0.6% 0.7% 2.1% 0.3% 2.4% 0.4% 0.3% 0.6% 0.7% 0.4% 1.0% 1.9% 0.1% 1.0% 0.2% 1.4%

4.0% 0.1% 4.1% 0.5% 0.6% 1.1% 2.1% 0.2% 2.3% 0.6% 0.4% 0.8% 0.7% 0.4% 1.2% 2.6% 0.0% 0.9% 0.4% 0.5%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation Total Office Equipment IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

2014 Best Practices Study

Dues/Subscriptions/Contributions

Taxes/Licenses

Agencies with Revenues Between $10,000,000 and $25,000,000

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

116

Miscellaneous

Total Operating

14.2%

14.5%

16.0%

continued on next page