2010 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Mgmt. Perspectives

Expenses (as % of Net Revenues)

Profile

Revenues

Average

+25% Profit

+25% Growth

Compensation Expenses Payroll: Employee

Expenses

55.7%

51.4%

57.4%

Profitability

Payroll: “Non-Employee” - 1099 Producers/Temp Help

0.2%

0.2%

0.1%

Total Payroll

55.9%

51.6%

57.5%

Employee Overview

Benefits: Payroll Taxes Benefits: Retirement Benefits: Insurance

3.3% 2.2% 3.4% 0.6% 9.5%

2.9% 2.5% 3.2% 0.1% 8.7%

3.3% 3.8% 4.1% 0.3%

Producer Info

Staff Service Info

Benefits: Other

Technology

Total Benefits

11.5% 69.0%

Total Compensation

65.4%

60.3%

Insurance Carriers

Selling Expenses T&E/Conventions Auto Expenditures Auto Depreciation

1.9% 0.6% 0.1% 0.8% 1.0% 3.5% 3.4% 0.3% 3.6% 0.5% 0.4% 0.9% 1.3% 0.6% 1.9% 0.7% 0.4% 0.7% 0.7% 0.3% 1.7% 1.1% 0.1% 0.7% 0.3% 1.2%

1.7% 0.4% 0.3% 0.8% 0.9% 3.3% 2.6% 0.2% 2.8% 0.5% 0.6% 1.0% 1.0% 0.6% 1.5% 0.9% 0.4% 0.6% 0.6% 0.3% 1.9% 0.5% 0.2% 0.2% 0.2% 3.6%

2.2% 0.6% 0.2% 1.0% 1.2% 4.2% 3.2% 0.3% 3.6% 0.6% 0.4% 1.0% 1.2% 0.8% 1.9% 0.7% 0.3% 0.7% 0.8% 0.3% 1.9% 1.3% 0.0% 0.4% 0.2% 1.0%

Appendix

Total Auto

Advertising/Promotions

Total Selling

Operating Expenses Occupancy Expenditures

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

2010 Best Practices Study

Insurance

Professional Fees

Bad Debts

Agencies with Revenues Over $25,000,000

Outside Services Education/Training

Miscellaneous

Total Operating

14.3%

14.6%

14.3%

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