2015 Best Practices Study

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

Key Benchmarks Profile

Profitability

Historical EBITDA Margin & Operating Margin (for Average Group)

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

35%

29.5%

30%

25.2%

25.1%

25.2%

24.7%

25%

22.9% 22.9%

21.0% 21.9%

20%

21.0% 21.2%

20.8%

20.7%

18.4%

17.6% 16.8%

16.6%

16.3%

15%

10%

10.1%

9.3%

9.6%

5%

6.5%

5.5%

5.6%

3.7%

4.5%

3.4%

0%

2007

2008

2009

2010

2011

2012

2013

2014

2015

Pro Forma EBITDA

EBITDA Margin

Operating Margin

About EBITDA Margin and Operating Margin EBITDA Margin is calculated by dividing a firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) by the firm’s net revenues.

Pro Forma EBITDA Margin is calculated by dividing a firm’s Pro Forma EBITDA by the firm’s Pro Forma net revenue.

Operating Margin is calculated as EBITDA less contingent income divided by Pro Forma net revenue less contingent income.

2015 Best Practices Study

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

93

Note: See page 163 for an explanation of column headings