2008 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

4.3% 0.2% 4.4% 0.6% 0.4% 1.0% 1.7% 0.3% 2.0% 1.0% 0.6% 1.1% 0.9% 0.5% 1.7% 1.0% 0.2% 0.3% 0.5% 0.5% 0.6% 0.2% 0.9% 0.0% 1.7%

4.5% 0.1% 4.7% 0.3% 0.4% 0.6% 1.6% 0.1% 1.7% 0.7% 0.6% 0.9% 0.8% 0.6% 1.3% 0.5% 0.1% 0.0% 0.5% 0.3% 0.7% 0.1% 0.2% 0.0% 1.0%

3.6% 0.1% 3.7% 0.3% 0.2% 0.5% 1.3% 0.4% 1.7% 0.6% 0.5% 0.9% 0.6% 0.4% 1.6% 0.8% 0.1% 0.0% 0.4% 0.4% 0.4% 0.1% 1.6% 0.0% 2.2%

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

15.6%

13.2%

12.2%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

79.1% 20.9% 23.5%

63.9% 36.1% 38.1%

71.2% 28.8% 32.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

9.5% 1.4% 7.2% -5.2%

22.5% 9.5% 5.8% -8.4%

14.6% 4.9% 6.9% -6.2%

Selling Expense

Operating Expense

Administrative Expense

28 2008 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses