2015 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Key Benchmarks Profile

Expenses (as % of Net Revenues) — continued

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Average

Top 25% Profit Top 25% Growth

ADMINISTRATIVE EXPENSES Amortization of Intangibles

1.0% 0.2% 0.6% 0.1% 2.0% 73.3% 26.7% 28.8%

0.0% 0.1% 0.0% 0.0%

0.8% 0.2% 0.0% 0.0%

Officer Life

Interest

Other

Total Administrative

0.1%

0.9%

TOTAL EXPENSES

48.2% 51.8% 51.8%

74.6% 25.4% 26.3%

PRE-TAX PROFIT (LOSS)

EBITDA

Average

Top 25% Profit Top 25% Growth

Expense Growth Over Prior Year Compensation Expense

6.0% -5.2% -0.9% -3.5%

-4.0% 13.1%

15.4% 10.6% 10.1%

Selling Expense

Operating Expense

2.8%

Administrative Expense

*

5.0%

*Insufficient Data

EBITDA—Earnings Before Interest Taxes Depreciation and Amortization

Expenses (as % of Net Revenues)

Average

Top 25% Profit

Top 25% Growth

60%

51.1%

50.9%

50%

40%

34.1%

30%

19.0%

20%

15.7%

2015 Best Practices Study

9.4%

10%

4.5% 4.5% 3.8%

2.0% 0.1% 0.9%

0%

Agencies with Revenues Under $1,250,000

Compensation

Selling

Operating

Administrative

13

Note: See page 163 for an explanation of column headings