2014 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.1% 0.2% 0.4% 0.8% 2.6% 84.6% 15.4% 17.9%

0.3% 0.0% 0.2% 0.2%

1.4% 0.3% 0.7% 0.3%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

0.8%

2.7%

Service Staff Info

Total Expenses

76.4% 23.6% 25.1%

86.0% 14.0% 17.2%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

11.1%

8.0% 4.3% 9.2% -3.7%

28.4% 21.5% 22.2% -8.5%

Selling Expense

7.1%

Operating Expense

10.6% -4.9%

Administrative Expense

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

64.7% 63.8% 58.5%

60%

50%

40%

30%

20%

14.2% 14.5% 16.0%

2014 Best Practices Study

10%

2.6% 0.8% 2.7%

3.2% 2.7% 3.5%

Agencies with Revenues Between $10,000,000 and $25,000,000

0%

Compensation

Selling

Operating

Administrative

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