2007 Best Practices Study

Agencies with Revenues Under $1,250,000

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

4.5% 0.0% 4.5% 0.6% 0.1% 0.7% 1.8% 0.2% 1.9% 1.3% 0.7% 1.3% 0.8% 0.4% 2.2% 0.7% 0.2% 0.2% 0.4% 0.5% 0.4% 0.2% 0.7% 0.0% 1.4%

3.1% -0.6% 2.5% 0.6% -1.0% -0.4% 1.0% 0.0% 1.0% 1.4% 0.5% 1.8% 1.0% 0.4% 1.8% 0.6% 0.1% 0.0% 0.4% 0.2% 11.2%

3.3% 0.1% 3.4% 0.3% 0.1% 0.3% 1.3% 0.1% 1.4% 1.2% 0.6% 1.3% 0.7% 0.2% 1.9% 0.3% 0.5% 0.2% 0.3% 0.2% 0.8% 0.2% 1.0% 0.0% 2.0%

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

15.9%

12.6%

Total Operating

Administrative Expenses Amortization of Intangibles

0.0% 0.2% 0.0% 0.0% 0.3%

Officer Life

Interest

Other

Total Administrative

75.6% 24.4% 26.2%

55.1% 44.9% 43.5%

69.0% 31.0% 33.8%

Total Expenses

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

5.2% 3.1% 5.0%

6.2% 4.7% 8.4%

20.6% 12.9%

Selling Expense

Operating Expense

8.9% 8.7%

Administrative Expense

11.8%

*

*Insufficient Data

14

2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Revenues/Expenses