2009 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

5.4% 0.2% 5.6% 0.6% 0.3% 0.9% 1.4% 0.2% 1.6% 0.9% 0.6% 1.1% 0.8% 0.5% 1.6% 1.0% 0.2% 0.4% 0.4% 0.4% 1.4% 0.3% 0.5% 0.2% 2.4%

5.4% 0.1% 5.5% 0.4% 0.0% 0.5% 1.2% 0.1% 1.2% 0.9% 0.6% 1.1% 0.6% 0.4% 1.6% 0.9% 0.1% 0.4% 0.4% 0.2% 1.2% 0.6% 0.3% 0.0% 2.1%

6.1% 0.2% 6.3% 0.5% 0.2% 0.7% 1.3% 0.5% 1.7% 1.1% 0.6% 0.6% 1.1% 0.5% 1.4% 1.1% 0.4% 0.4% 0.3% 0.6% 1.3% 0.1% 0.7% 0.0% 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

16.1%

14.4%

16.9%

Administrative Expenses Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

Total Expenses

84.4% 15.6% 18.3%

75.8% 24.2% 26.0%

81.2% 18.8% 21.7%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

3.1% 3.8% 3.0% -4.9%

10.2% 12.3%

5.2%

Selling Expense

13.1%

Operating Expense

0.5%

5.9% 3.2%

Administrative Expense

-25.9%

48 2009 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses