2009 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

3.5% 0.2% 3.8% 0.3% 0.6% 0.9% 1.2% 0.5% 1.6% 0.7% 0.4% 0.7% 0.6% 0.4% 1.4% 0.9% 0.1% 0.8% 0.3% 0.6% 1.1% 0.3% 0.8% 0.2% 2.4%

3.4% 0.4% 3.8% 0.2% 0.3% 0.5% 0.9% 0.4% 1.3% 0.6% 0.4% 0.7% 0.5% 0.3% 1.1% 1.2% 0.1% 0.5% 0.2% 0.4% 0.5% 0.1% 0.0% 0.4% 1.0%

3.4% 0.2% 3.6% 0.3% 0.4% 0.7% 1.0% 0.5% 1.5% 0.6% 0.3% 0.6% 0.5% 0.3% 1.0% 1.3% 0.1% 0.8% 0.3% 0.2% 1.0% 0.4% 0.2% 0.4% 2.0%

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%

11.6%

11.9%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

85.0% 15.0% 18.2%

73.7% 26.3% 27.9%

78.9% 21.1% 23.4%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

2.3% 4.9% 3.5% 0.0%

5.8% 7.0% -2.4%

7.7%

Selling Expense

11.6%

Operating Expense

-0.5%

Administrative Expense

3.7%

12.2%

88 2009 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses