2008 Best Practices Study

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

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

3.6% 0.1% 3.7% 0.4% 0.5% 0.9% 1.1% 0.4% 1.5% 0.6% 0.6% 0.8% 0.7% 0.4% 1.6% 0.8% 0.1% 0.5% 0.3% 0.2% 0.9% 0.3% 0.5% 1.2% 2.9%

3.7% 0.0% 3.7% 0.3% 0.1% 0.4% 1.0% 0.3% 1.2% 0.5% 0.5% 0.7% 0.4% 0.3% 1.4% 0.8% 0.1% 0.4% 0.2% 0.2% 0.4% 0.1% 0.4% 0.0% 0.9%

4.5% 0.1% 4.6% 0.3% 0.1% 0.4% 1.0% 0.1% 1.1% 0.5% 0.9% 1.0% 0.7% 0.5% 1.5% 1.2% 0.0% 0.2% 0.4% 0.1% 0.7% 0.2% 0.7% 2.3% 4.0%

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

12.6%

10.9%

13.2%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

82.0% 18.0% 20.7%

74.5% 25.5% 26.7%

83.7% 16.3% 18.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

3.0% 7.1% 4.0% 9.5%

0.9%

8.8%

Selling Expense

-0.8% -2.7%

12.4% 14.8% 23.2%

Operating Expense

Administrative Expense

*

*Insufficient Data

68 2008 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses