2013 Best Practices Study

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

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

1.4% 0.3% 0.6% 1.0% 3.2% 87.0% 13.0% 15.8%

0.9% 0.2% 1.0% 0.1%

2.3% 0.4% 0.5% 0.1%

Officer Life

Interest

Other

Total Administrative

2.2%

3.3%

Total Expenses

81.5% 18.5% 21.2%

87.0% 13.0% 16.3%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

11.1%

10.8% -0.7%

17.3% 13.1%

Selling Expense

7.0% 5.4% 5.9%

Operating Expense

5.5%

6.0% 5.5%

Administrative Expense

14.7%

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

66.7%

65.7%

63.1%

60%

50%

40%

30%

20%

13.7% 12.7% 14.1%

10%

2013 Best Practices Study

3.2% 2.2% 3.3%

3.4% 3.4% 3.9%

0%

Compensation

Selling

Operating

Administrative

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

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