2014 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

0.9% 0.2% 1.0% 0.2% 2.3% 77.3% 22.7% 25.6%

0.2% 0.1% 0.0% 0.0%

1.0% 0.3% 0.9% 0.0%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

0.3%

2.3%

Service Staff Info

Total Expenses

54.5% 45.5% 45.8%

76.5% 23.5% 26.4%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

5.6% -4.8% 7.1% 4.0%

-6.1% -7.4% 5.9%

7.7%

Selling Expense

-14.2% 10.7%

Operating Expense

Administrative Expense

*

*

*Insufficient Data

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

60%

52.2% 52.2%

50%

38.3%

40%

30%

20%

17.3%

16.5%

2014 Best Practices Study

12.4%

10%

5.5%

5.1% 3.5%

2.3%

2.3%

0.3%

Agencies with Revenues Under $1,250,000

0%

Compensation

Selling

Operating

Administrative

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