2015 Best Practices Study

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

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

1.7% 0.1% 0.4% 1.0% 3.2% 86.4% 13.6% 16.9%

0.7% 0.1% 0.2% 0.9%

0.8% 0.2% 0.7% 0.1%

Officer Life

Interest

Other

Total Administrative

1.9%

1.8%

TOTAL EXPENSES

75.5% 24.5% 26.4%

86.9% 13.1% 15.8%

PRE-TAX PROFIT (LOSS)

EBITDA

Average

Top 25% Profit Top 25% Growth

Expense Growth Over Prior Year Compensation Expense

9.9%

7.4% 5.5% 5.7%

14.9% 16.6% 17.9% 22.2%

Selling Expense

10.5% 10.8% 20.1%

Operating Expense

Administrative Expense

36.3%

EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization

Expenses (as % of Net Revenues)

Average

Top 25% Profit

Top 25% Growth

70%

68.5%

65.5%

59.0%

60%

50%

40%

30%

20%

13.4%

2015 Best Practices Study

10.9% 12.0%

10%

3.2% 1.9% 1.8%

4.2% 3.6% 4.7%

0%

Agencies with Revenues Over $25,000,000

Compensation

Selling

Operating

Administrative

143

Note: See page 163 for an explanation of column headings