2011 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.0% 0.2% 0.9% 0.3% 2.4%

0.0% 0.1% 0.5% 0.1% 0.7%

2.2% 0.2% 1.3% 0.2% 3.9%

Officer Life

Interest

Other

Total Administrative

Total Expenses

84.4% 15.6% 18.6%

75.5% 24.5% 25.6%

80.3% 19.7% 24.6%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

2.4% 1.8% 2.4% -7.0%

3.5% 1.5% 5.2%

10.1% 3.6% 2.8% -1.5%

Selling Expense

Operating Expense

Administrative Expense

-23.3%

Expenses (as % of Net Revenues)

2011 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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