2007 Best Practices Study

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

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

3.3% 0.1% 3.4% 0.3% 0.4% 0.8% 1.1% 0.4% 1.5% 0.6% 0.4% 0.7% 0.7% 0.3% 1.5% 1.1% 0.1% 0.9% 0.4% 0.5% 1.2% 0.2% 1.0% 0.3% 2.3%

2.9% 0.1% 3.0% 0.3% 0.4% 0.7% 1.0% 0.2% 1.2% 0.4% 0.5% 0.6% 0.5% 0.2% 1.4% 0.7% 0.1% 0.2% 0.2% 1.2% 0.2% 0.1% 0.0% 0.1% 0.4%

3.3% 0.2% 3.5% 0.4% 0.6% 0.9% 0.8% 0.6% 1.3% 0.5% 0.4% 0.8% 0.5% 0.3% 1.2% 1.1% 0.1% 0.7% 0.3% 0.3% 0.9% 0.1% 0.3% 1.2% 2.5%

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

13.0%

11.0%

12.0%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

81.7% 18.3% 21.6%

69.8% 30.2% 31.2%

75.5% 24.5% 27.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

12.8% 10.9% 12.7%

13.6%

24.2%

Selling Expense

5.2%

9.0%

Operating Expense

10.6%

18.5%

Administrative Expense

2.1%

-3.5%

2.7%

128 2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses