2007 Best Practices Study

Agencies with Revenues Over $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

3.4% 0.4% 3.8% 0.4% 0.5% 1.0% 1.3% 0.5% 1.8% 0.8% 0.5% 1.0% 0.7% 0.3% 1.9% 1.1% 0.1% 0.6% 0.3% 0.8% 1.7% 0.1% 0.6% 0.2% 2.6%

2.6% 0.4% 2.9% 0.4% 0.6% 1.0% 0.9% 0.4% 1.3% 0.8% 0.4% 0.9% 0.7% 0.2% 1.4% 0.8% 0.0% 0.4% 0.2% 1.8% 1.3% 0.0% 0.0% 0.4% 1.7%

3.4% 0.5% 3.9% 0.3% 0.5% 0.8% 1.7% 0.6% 2.3% 1.1% 0.5% 1.0% 0.8% 0.3% 1.9% 1.1% 0.1% 0.8% 0.3% 0.4% 1.7% 0.1% 0.2% 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

Total Operating

14.7%

13.0%

15.4%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

85.2% 14.8% 18.6%

76.3% 23.7% 26.4%

87.6% 12.4% 16.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

11.5% 15.8% 10.4%

7.4% 5.9%

18.1% 21.3% 14.9%

Selling Expense

Operating Expense

10.1% 20.2%

Administrative Expense

9.6%

-2.2%

158

2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses