2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

0.3% 0.2% 1.2% 0.1% 1.7% 76.9% 23.1% 25.8%

-2.3% 0.4% 0.9% 0.0% -1.0% 61.4% 38.6%

1.0% 0.2% 0.5% 0.2%

Officer Life

Interest

Other

Total Administrative

1.9%

Total Expenses

74.1% 25.9% 28.9%

Pre-Tax Profit (Loss)

EBITDA

38.9%

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

6.1% 2.4% 2.8% -1.2%

-0.2% 5.5% -0.2%

12.0%

Selling Expense

2.9% 8.8%

Operating Expense

Administrative Expense

*

*

*Insufficient Data

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

60%

52.2%

50%

47.1%

43.2%

40%

30%

19.5%

17.4%

20%

13.6%

10%

5.5% 5.6% 5.7%

1.7%

1.9%

0%

2013 Best Practices Study

–1.0%

–10%

Compensation

Selling

Operating

Administrative

Agencies with Revenues Under $1,250,000

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