2012 Best Practices Study

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

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.4% 0.2% 0.9% 0.4% 2.9%

0.6% 0.3% 0.9% 0.8% 2.6%

0.2% 0.1% 0.3% 0.0% 0.6%

Officer Life

Interest

Other

Total Administrative

Total Expenses

86.7% 13.3% 16.6%

78.8% 21.2% 23.2%

83.2% 16.8% 18.0%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

2.5% 2.2% 2.0%

2.6%

5.2%

Selling Expense

-12.3%

-4.8% -5.6%

Operating Expense

2.5%

Administrative Expense

-11.9%

-24.5%

-22.1%

Expenses (as % of Net Revenues)

2012 Best Practices Study

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

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