2014 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.3% 0.3% 1.0% 0.0% 2.6% 82.0% 18.0% 21.2%

0.7% 0.3% 0.9% 0.1%

1.7% 0.3% 1.7% -0.2%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

1.9%

3.5%

Service Staff Info

Total Expenses

74.0% 26.0% 28.2%

77.2% 22.8% 26.9%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

7.9% 7.5% 7.5% 0.3%

8.7% 5.6% 5.4% 0.6%

13.0% 14.7% 16.3%

Selling Expense

Operating Expense

Administrative Expense

6.2%

Expenses (as % of Net Revenues)

61.7%

Average

+25% Profit

+25% Growth

58.4%

60%

56.9%

50%

40%

30%

20%

14.5% 12.5% 12.3%

2014 Best Practices Study

10%

3.5%

3.2% 2.7% 3.0%

2.6% 1.9%

Agencies with Revenues Between $5,000,000 and $10,000,000

0%

Compensation

Selling

Operating

Administrative

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