101 / 185
101
2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses
Agencies with Revenues Between $5,000,000 and $10,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Average
+25% Profit
+25% Growth
Revenue/Expense/Profit Summary
Compensation
0%
10%
20%
30%
40%
50%
60%
70%
5 Profit
rowth
Selling
Operating
Administrative
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
50.5%
39.8%
51.4%
Bonds
0.9%
0.2%
0.5%
Personal Lines
19.8%
31.9%
15.1%
VAS - P&C
1.5%
0.3%
0.2%
Contingent/Bonus
9.4%
11.9%
8.4%
Group Life & Health
11.6%
8.5%
14.0%
Individual Life & Health
3.3%
2.8%
5.1%
VAS - L&H
0.1%
0.0%
0.2%
Bonus/Overrides
0.4%
0.7%
0.9%
Investments
1.7%
1.9%
2.0%
Miscellaneous
0.8%
2.0%
2.2%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.2%
0.2%
0.3%
Net Revenues
98.8%
99.8%
99.7%
Expenses (as % of Net Revenues)
Compensation
65.5%
57.4%
66.3%
Selling
3.1%
3.5%
2.9%
Operating
12.5%
13.3%
11.8%
Administrative
2.8%
3.6%
2.1%
Total Expenses
83.9%
77.7%
83.2%
Pre-Tax Profit
16.1%
22.3%
16.8%
Pro Forma Pre-Tax Profit
1
27.2%
41.9%
29.9%
Operating Pre-Tax Profit
2
4.5%
7.8%
5.6%
EBITDA
3
18.4%
24,2%
18.7%
Pro Forma EBITDA
29.5%
43.8%
31.7%
1
Pre-tax Profits if
discretionary expenses
are eliminated and all
owners compensated as
employees
2
Pre-tax Profits excluding
income from
contingents, bonus and
investment income
3
EBITDA—Earnings
Before Interest Taxes
Depreciation and
Amortization