2015 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

1.0% 0.3% 0.5% 0.1% 2.0% 81.7% 18.3% 20.8%

0.9% 0.5% 0.8% 0.0%

0.6% 0.4% 0.2% 0.1%

Officer Life

Interest

Other

Total Administrative

2.3%

1.3%

TOTAL EXPENSES

76.8% 23.2% 25.6%

77.0% 23.0% 24.2%

PRE-TAX PROFIT (LOSS)

EBITDA

Average

Top 25% Profit Top 25% Growth

Expense Growth Over Prior Year Compensation Expense

7.6% 5.5% 3.9% -5.3%

6.0% 6.9% 9.5% -0.2%

12.1% 11.6% 10.6%

Selling Expense

Operating Expense

Administrative Expense

6.6%

EBITDA—Earnings Before Interest, Taxes, Depreciation and Amortization

Expenses (as % of Net Revenues)

Average

Top 25% Profit

Top 25% Growth

70%

62.1%

59.7% 57.9%

60%

50%

40%

30%

20%

14.3% 13.6% 13.0%

2015 Best Practices Study

10%

3.3% 3.0% 3.0%

2.0% 2.3% 1.3%

0%

Agencies with Revenues Between $5,000,000 and $10,000,000

Compensation

Selling

Operating

Administrative

91

Note: See page 163 for an explanation of column headings