2009 Best Practices Study

Agencies with Revenues Less than $1,250,000

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

5.2% 0.1% 5.4% 0.5% 0.0% 0.5% 2.0% 0.1% 2.1% 1.4% 0.7% 1.3% 1.0% 0.4% 2.2% 0.7% 0.0% 0.3% 0.4% 0.5% 0.6% 0.3% 0.6% 0.0% 1.5%

5.1% -0.2% 4.9% 0.8% -0.1% 0.7% 1.4% 0.0% 1.4% 2.0% 0.6% 1.7% 1.2% 0.5% 2.5% 0.8% 0.1% 0.4% 0.4% 0.7% 17.9%

5.2% -0.3% 4.9% 0.9% -0.3% 0.6% 2.6% 0.1% 2.6% 1.4% 0.6% 1.5% 1.1% 0.4% 2.4% 0.4% 0.0% 0.1% 0.8% 0.3% 17.2%

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

17.0%

Administrative Expenses Amortization of Intangibles

0.6% 0.4% 0.2% 0.0% 1.2%

0.1% 0.1% 1.1% 0.0% 1.4%

Officer Life

Interest

Other

Total Administrative

Total Expenses

83.4% 16.6% 18.5%

70.8% 29.2% 29.2%

80.6% 19.4% 20.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Growth Over Prior Year Compensation Expense

2.7% 2.0% 1.8%

-1.2% -9.1%

8.5% 8.7% 2.3% -8.5%

Selling Expense

Operating Expense

5.6%

Administrative Expense

-15.3%

-17.0%

8 2009 Best Practices Study | Agencies with Revenues Less than $1,250,000 | Revenues/Expenses