2013 Best Practices Study

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

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.8% 0.3% 0.9% 0.2% 3.2% 82.5% 17.5% 21.0%

0.6% 0.3% 1.2% 0.1%

2.1% 0.2% 0.5% 0.0%

Officer Life

Interest

Other

Total Administrative

2.1%

2.8%

Total Expenses

71.6% 28.4% 30.6%

83.9% 16.1% 19.3%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

6.6% 4.6% 7.1% 1.5%

1.3%

16.0% 8.9% 9.0% -7.8%

Selling Expense

18.9% 10.5%

Operating Expense

Administrative Expense

7.6%

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

64.3%

61.8%

60%

53.6%

50%

40%

30%

20%

14.2% 13.0% 13.3%

10%

3.3% 2.9% 3.5%

3.2%

2013 Best Practices Study

2.1% 2.8%

0%

Compensation

Selling

Operating

Administrative

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

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