2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

1.3% 0.2% 0.5% 0.1% 2.2% 78.2% 21.8% 24.6%

0.6% 0.1% 0.2% 0.0%

1.9% 0.1% 0.5% 0.2%

Officer Life

Interest

Other

Total Administrative

0.9%

2.6%

Total Expenses

59.7% 40.3% 41.4%

79.5% 20.5% 24.3%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

9.0% 2.9% 3.0% -7.9%

16.2%

18.2% -2.0% 14.1%

Selling Expense

0.6% 0.4%

Operating Expense

Administrative Expense

-28.7%

5.7%

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

60%

56.6%

56.3%

50%

43.2%

40%

30%

16.3%

20%

15.7%

11.7%

10%

3.8% 4.0% 4.3%

2013 Best Practices Study

2.2% 0.9% 2.6%

0%

Compensation

Selling

Operating

Administrative

Agencies with Revenues Between $1,250,000 and $2,500,000

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