2009 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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% 0.1% 4.4% 0.4% 0.2% 0.6% 1.3% 0.3% 1.6% 0.6% 0.5% 0.8% 0.8% 0.3% 1.6% 0.7% 0.3% 0.5% 0.4% 0.4% 1.0% 0.4% 0.7% 1.1% 3.2%

4.0% 0.0% 4.0% 0.3% 0.0% 0.3% 1.3% 0.2% 1.5% 0.6% 0.3% 0.8% 0.5% 0.4% 1.4% 0.5% 0.0% 0.6% 0.4% 0.2% 0.4% 0.6% 0.3% 0.0% 1.3%

3.5% 0.1% 3.6% 0.2% 0.3% 0.5% 1.3% 0.4% 1.7% 0.6% 0.4% 0.8% 0.6% 0.4% 1.4% 0.6% 0.7% 0.6% 0.4% 0.6% 0.3% 0.7% 1.6% 0.0% 2.6%

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

13.5%

11.7%

12.8%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

84.8% 15.2% 17.6%

77.4% 22.6% 23.5%

89.7% 10.3% 13.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

2.1% 0.5% 8.1% -1.7%

-0.3% 1.4% 4.3%

4.4%

Selling Expense

-3.0%

Operating Expense

12.9%

Administrative Expense

-16.4%

3.6%

68 2009 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses