2014 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Key Benchmarks

Expenses (as % of Net Revenues) — continued

Profile

Revenues Expenses

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.5% 0.2% 0.7% 0.3% 2.7% 79.5% 20.5% 23.6%

1.1% 0.1% 0.5% 0.0%

1.3% 0.3% 0.6% 0.0%

Profitability

Officer Life

Employee Overview

Interest

Other

Producer Info

Total Administrative

1.7%

2.2%

Service Staff Info

Total Expenses

64.8% 35.2% 37.1%

82.4% 17.6% 20.2%

Pre-Tax Profit (Loss)

Technology

EBITDA

Insurance Carriers

Average

+25% Profit

+25% Growth

Appendix

Expense Growth Over Prior Year Compensation Expense

7.4%

2.7% 8.8%

14.3% 18.9%

Selling Expense

13.9% 5.9% -3.8%

Operating Expense

13.9% -1.5%

7.0% 8.3%

Administrative Expense

Expenses (as % of Net Revenues)

61.3%

Average

+25% Profit

+25% Growth

58.8%

60%

49.4%

50%

40%

30%

20%

14.8%

14.1%

2014 Best Practices Study

11.6%

10%

3.9% 2.1% 4.0%

2.7% 1.7% 2.2%

Agencies with Revenues Between $2,500,000 and $5,000,000

0%

Compensation

Selling

Operating

Administrative

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