2008 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

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

3.4% 0.2% 3.6% 0.4% 0.5% 0.9% 1.2% 0.5% 1.7% 0.6% 0.4% 0.7% 0.6% 0.3% 1.5% 1.0% 0.1% 0.8% 0.3% 0.5% 0.9% 0.2% 0.8% 0.2% 2.2%

2.9% 0.4% 3.3% 0.4% 0.4% 0.9% 0.9% 0.3% 1.2% 0.5% 0.4% 0.7% 0.6% 0.3% 1.2% 0.7% 0.2% 0.4% 0.2% 0.6% 0.4% 0.1% 0.0% 0.3% 0.8%

3.6% 0.2% 3.8% 0.3% 0.6% 0.8% 1.1% 0.5% 1.5% 0.7% 0.3% 0.8% 0.6% 0.4% 1.1% 1.3% 0.1% 0.6% 0.3% 0.3% 2.2% 0.1% 1.2% 0.4% 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

13.3%

11.1%

12.7%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

83.8% 16.2% 19.2%

72.7% 27.3% 28.8%

81.6% 18.4% 23.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

8.9% 7.7% 4.8% 9.9%

4.3%

17.4% 20.0% 12.2% 14.7%

Selling Expense

-0.5%

Operating Expense

2.1%

Administrative Expense

13.8%

88 2008 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses