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2008 Best Practices Study | Agencies with Revenues Under $1,250,000 | Revenues/Expenses
Agencies with Revenues Under $1,250,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Profile
Revenue/Expense/Profit Summary
Expenses (as % of Net Revenue)
Average
+25% Profit
+25% Growth
Revenues (% by Source)
Commercial Lines
46.5%
46.2%
50.5%
Bonds
2.1%
0.5%
6.3%
Personal Lines
35.7%
40.0%
29.1%
VAS - P&C
0.4%
0.0%
1.3%
Contingent/Bonus
8.1%
7.7%
8.9%
Group Life & Health
4.2%
3.8%
0.7%
Individual Life & Health
1.2%
1.0%
1.7%
VAS - L&H
0.7%
0.0%
0.0%
Bonus/Overrides
0.0%
0.0%
0.0%
Investments
0.8%
0.8%
1.3%
Miscellaneous
0.1%
0.0%
0.4%
Total Revenues
100.0%
100.0%
100.0%
Less Brokerage Commission Expense
0.1%
0.0%
0.0%
Net Revenues
99.9%
100.0%
100.0%
Expenses (as % of Net Revenues)
Compensation
56.9%
47.3%
51.3%
Selling
6.3%
5.4%
5.7%
Operating
16.2%
13.2%
16.2%
Administrative
1.4%
0.3%
0.5%
Total Expenses
80.7%
66.3%
73.7%
Pre-Tax Profit
19.3%
33.7%
26.3%
Pro Forma Pre-Tax Profit
1
23.8%
39.4%
25.1%
Operating Pre-Tax Profit
2
6.6%
12.5%
5.3%
EBITDA
3
21.4%
34.1%
28.1%
Pro Forma EBITDA
4
26.0%
39.9%
27.2%
1
Pre-tax Profits if
discretionary expenses
are eliminated (e.g.
certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded
2
Pre-tax Profits excluding
income from
contingents, bonus and
investment income
3
EBITDA—Earnings
Before Interest Taxes
Depreciation and
Amortization
4
EBITDA if discretionary
expenses are eliminated
(e.g. certain owner’s
perks/benefits), and one-
time or extraordinary
revenues are excluded