2012 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

1.0% 0.1% 0.7% 0.4% 2.2%

0.0% 0.1% 0.3% 0.0% 0.4%

1.0% 0.3% 0.4% 0.2% 0.9%

Officer Life

Interest

Other

Total Administrative

Total Expenses

82.4% 17.6% 20.3%

72.5% 27.5% 28.5%

78.1% 21.9% 23.2%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

3.0%

7.0%

9.4%

Selling Expense

-1.1%

-3.9%

16.3% 11.3%

Operating Expense

3.7%

9.2%

Administrative Expense

-1.4%

-12.3%

3.7%

Expenses (as % of Net Revenues)

2012 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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