2012 Best Practices Study

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

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

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

0.7% 0.3% 1.1% 0.0% 2.1%

0.1% 0.2% 0.6% 0.0% 1.0%

0.1% 0.2% 1.6% 0.0% 2.0%

Officer Life

Interest

Other

Total Administrative

Total Expenses

79.7% 20.3% 22.8%

63.7% 36.3% 37.2%

77.4% 22.6% 25.0%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

0.9% 3.0% -0.4% -6.9%

8.6%

6.9% 4.9%

Selling Expense

-9.1%

Operating Expense

5.5%

10.5% -7.4%

Administrative Expense

*

* Insufficient Data

Expenses (as % of Net Revenues)

2012 Best Practices Study

Agencies with Revenues Under $1,250,000

11