2009 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

3.7% 0.1% 3.8% 0.4% 0.2% 0.7% 1.6% 0.3% 2.0% 0.9% 0.6% 1.1% 0.8% 0.5% 1.6% 1.2% 0.1% 0.2% 0.5% 0.2% 0.9% 0.2% 0.7% 0.0% 1.8%

3.5% 0.1% 3.6% 0.4% 0.3% 0.7% 1.0% 0.2% 1.2% 0.6% 0.6% 1.1% 0.6% 0.4% 1.2% 1.0% 0.0% 0.0% 0.4% 0.2% 0.2% 0.1% 0.1% 0.0% 0.4%

3.1% 0.1% 3.1% 0.1% 0.2% 0.3% 1.4% 0.4% 1.8% 0.6% 0.4% 0.9% 0.8% 0.3% 1.5% 1.7% 0.1% 0.1% 0.5% 0.1% 0.2% 0.1% 0.1% 0.0% 0.5%

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

14.2%

11.7%

12.1%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

74.7% 25.3% 27.7%

55.6% 44.4% 45.5%

68.9% 31.1% 32.4%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

6.0% 4.0% 6.1% 2.5%

16.5%

20.2% 14.9% 15.1%

Selling Expense

9.8%

Operating Expense

16.5% 22.1%

Administrative Expense

6.5%

28 2009 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses