2013 Best Practices Study

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

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

2.4% 0.1% 0.3% 0.7%

0.6% 0.1% 0.1% 0.1%

2.9% 0.2% 0.4% 0.3%

Officer Life

Interest

Other

Total Administrative

3.5%

0.9%

3.8%

Total Expenses

84.6% 15.4%

74.8% 25.5%

85.3% 14.7%

Pre-Tax Profit (Loss)

EBITDA

19.2%

26.4%

19.0%

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

8.4% 8.0% 7.7% 3.6%

8.0% 3.7% 7.2%

12.6% 13.1%

Selling Expense

Operating Expense

8.7%

Administrative Expense

10.5%

29.7%

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

65.8%

64.1%

58.1%

60%

50%

40%

30%

20%

13.2% 12.9% 12.2%

2013 Best Practices Study

10%

3.8% 2.9% 3.4%

3.5%

3.8%

0.9%

0%

Compensation

Selling

Operating

Administrative

Agencies with Revenues Over $25,000,000

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