2007 Best Practices Study

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

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Expenses (continued)

Average

+25% Profit

+25% Growth

Operating Expenses Occupancy Expenditures

3.2% 0.3% 3.5% 0.5% 0.5% 0.9% 1.0% 0.3% 1.3% 0.7% 0.5% 0.9% 0.7% 0.4% 1.4% 0.8% 0.1% 0.6% 0.3% 0.4% 0.7% 0.4% 0.4% 1.2% 2.8%

4.2% 0.4% 4.6% 0.6% 0.5% 1.1% 1.1% 0.1% 1.2% 0.7% 0.6% 0.8% 0.6% 0.2% 0.9% 0.6% 0.2% 0.7% 0.3% 0.6% 0.5% 0.5% 0.3% 2.2% 3.6%

2.9% 0.2% 3.0% 0.4% 0.3% 0.7% 0.9% 0.1% 1.1% 0.5% 0.4% 1.0% 0.8% 0.3% 1.2% 1.1% 0.1% 0.6% 0.3% 0.6% 0.4% 0.6% 0.8% 0.4% 2.1%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation

Total Office Equipment

IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous

Total Operating

12.5%

13.3%

11.8%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

83.9% 16.1% 18.4%

77.7% 22.3% 24.2%

83.2% 16.8% 18.7%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

11.4%

13.2%

20.6% 15.2% 13.3% 36.7%

Selling Expense

7.5%

8.2%

Operating Expense

11.7%

14.9%

Administrative Expense

4.1%

6.5%

100 2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses