2014 Best Practices Study

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

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.6% 0.1% 0.4% 0.8% 2.9% 85.2% 14.8% 17.8%

0.4% 0.0% 0.1% 0.0%

2.0% 0.2% 0.5% 0.4%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

0.6%

3.0%

Service Staff Info

Total Expenses

75.0% 25.0% 26.5%

85.9% 14.1% 17.7%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

9.0%

7.3% 8.9% 8.2% 0.2%

13.8% 16.7% 13.9% 24.6%

Selling Expense

11.9%

Operating Expense

8.8% 7.3%

Administrative Expense

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

64.8% 64.4% 58.6%

60%

50%

40%

30%

20%

2014 Best Practices Study

13.3% 12.0% 13.7%

10%

3.0%

4.2% 3.8% 4.8%

2.9% 0.6%

Agencies with Revenues Over $25,000,000

0%

Compensation

Selling

Operating

Administrative

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