2014 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

0.8% 0.2% 0.4% 0.0% 1.4% 77.0% 23.0% 25.1%

0.1% 0.1% 0.2% 0.1%

2.7% 0.0% 0.5% 0.0%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

0.5%

3.2%

Service Staff Info

Total Expenses

63.0% 37.0% 37.7%

72.5% 27.5% 32.1%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

8.4% 9.3%

4.7%

10.0%

Selling Expense

13.9% 30.0%

8.8%

Operating Expense

10.3% -12.2%

30.0% -7.8%

Administrative Expense

*

*Insufficient Data

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

60%

55.3%

50%

47.8%

41.7%

40%

30%

20%

16.1% 16.1% 17.8%

2014 Best Practices Study

10%

3.2%

4.2% 4.7% 3.7%

1.4% 0.5%

Agencies with Revenues Between $1,250,000 and $2,500,000

0%

Compensation

Selling

Operating

Administrative

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