2008 Best Practices Study

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

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Expenses (continued)

Average

+25% Profit

+25% Growth

Operating Expenses Occupancy Expenditures

4.5% 0.2% 4.7% 0.5% 0.3% 0.8% 1.5% 0.2% 1.8% 0.8% 0.6% 1.1% 0.7% 0.3% 1.6% 0.7% 0.1% 0.6% 0.5% 0.4% 1.1% 0.5% 0.5% 0.3% 2.3%

5.5% 0.4% 5.9% 0.7% 0.1% 0.8% 1.6% 0.1% 1.7% 0.8% 0.6% 1.2% 0.6% 0.4% 1.6% 0.6% 0.0% 0.3% 0.4% 0.4% 1.2% 0.1% 0.2% 0.2% 1.7%

5.4% 0.4% 5.8% 0.3% 0.3% 0.7% 1.8% 0.2% 2.0% 1.1% 0.6% 1.3% 0.8% 0.2% 1.4% 0.3% 0.1% 0.3% 0.5% 0.2% 1.7% 0.2% 0.3% 0.3% 2.4%

Occupancy Depreciation/Amortization

Total Occupancy

Office Equipment Expenditures Office Equipment Depreciation

Total Office Equipment

IT (Information Technology) IT Depreciation/Amortization

Total IT

Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous

Total Operating

14.6%

15.5%

15.2%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

81.3% 18.7% 21.1%

72.4% 27.6% 29.8%

76.3% 23.7% 26.7%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

3.9% 3.7% 4.5% 3.0%

7.2%

12.0%

Selling Expense

-7.2%

6.5% 5.9%

Operating Expense

6.3%

Administrative Expense

20.3%

24.8%

48 2008 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses