ACG - Agency Consulting Group

The PIPELINE

A national monthly newsletter for agency principals dedicated to agency management topic

2014 COMPOSITE GROUP 1

COMPOSITE GROUP 1

NET REVENUE < $1,000,000

2014 AVG. NET REVENUE $822,440

2013 AVG. NET REVENUE $813,389

2012 AVG. NET REVENUE $792,689

2011 AVG. NET REVENUE $745,298

2010 AVG. NET REVENUE $732,333

INCOME (% OF GROSS) Your Agency $ Your Agency % 2014 2013 2012 2011 2010

P&C COMMISSION _______________ ______________ 94.3% 94.1% 93.9% 93.3% 93.1%

CONTINGENTS ______________ ______________ 2.6% 2.5% 2.1% 2.1% 2.2%

FEES _______________ ______________ 0.0% 0.0% 0.1% 0.1% 0.2%

LIFE & HEALTH _______________ ______________ 2.9% 3.2% 3.8% 4.1% 3.9%

INVESTMENT _______________ ______________ 0.1% 0.2% 0.2% 0.2% 0.3%

MISCELLANEOUS _______________ ______________ 0.1% 0.1% 0.1% 0.2% 0.3%

_______________ ______________

GROSS REVENUE _______________ ______________ 100.0% 100.0% 100.0% 100.0% 100.0%

COMM. EXPENSE _______________ ______________ 6.7% 6.8% 8.0% 7.2% 7.7%

NET REVENUE _______________ ______________ 93.3% 93.2% 92.1% 92.8% 92.3%

_______________ ______________

EXPENSES(% OF NET REV) _______________ ______________ 2014 2013 2012 2011 2010

COMPENSATION _______________ ______________

EXEC/SALES _______________ ______________ 31.5% 32.0% 32.0% 31.8% 32.4%

OFFICE _______________ ______________ 19.0% 20.0% 20.1% 20.5% 20.7%

SUB-TOTAL _______________ ______________ 50.5% 52.0% 52.1% 52.3% 53.1%

COST OF EMPLOYMENT _______________ ______________ 14.6% 14.5% 14.3% 14.1% 13.3%

TOTAL _______________ ______________ 65.1% 66.4% 66.4% 66.4% 66.4%

_______________ ______________

SELLING _______________ ______________

T&E _______________ ______________ 1.1% 1.1% 1.1% 1.1% 1.1%

AUTO _______________ ______________ 1.2% 1.1% 1.1% 1.1% 1.1%

ADV&PROMO _______________ ______________ 1.6% 1.3% 1.4% 1.5% 1.5%

TOTAL _______________ ______________ 3.8% 3.6% 3.6% 3.7% 3.7%

_______________ ______________

OPERATING COSTS _______________ ______________

OCCUPANCY _______________ ______________ 4.7% 4.7% 4.6% 4.7% 4.6%

TELEPHONE _______________ ______________ 2.2% 2.3% 2.2% 2.3% 2.4%

POSTAGE _______________ ______________ 0.7% 0.8% 0.8% 0.8% 0.8%

PRINT/STATION./OFF SUPP. _______________ ______________ 1.9% 1.9% 2.0% 2.0% 2.0%

DUES,SUBSCRIP.& CONTRIB. _______________ ______________ 0.4% 0.4% 0.4% 0.5% 0.5%

TAXES & LICENSES _______________ ______________ 0.6% 0.5% 0.5% 0.6% 0.6%

P&C INSURANCE _______________ ______________ 2.3% 2.3% 2.3% 2.3% 2.6%

PROFESSIONAL FEES _______________ ______________ 1.6% 1.6% 1.5% 1.5% 1.1%

EQUIPMENT RENTAL & MAINT. _______________ ______________ 1.1% 1.1% 1.1% 1.3% 1.3%

BAD DEBTS _______________ ______________ 0.6% 0.6% 0.6% 0.4% 0.1%

OUTSIDE SERVICES _______________ ______________ 0.4% 0.5% 0.3% 0.4% 0.4%

DATA PROCESSING _______________ ______________ 2.6% 2.6% 2.5% 2.5% 2.5%

EDUCATION _______________ ______________ 0.3% 0.2% 0.3% 0.3% 0.5%

MISCELLANEOUS _______________ ______________ 0.2% 0.2% 0.2% 0.3% 0.3%

TOTAL _______________ ______________ 19.6% 19.6% 19.4% 19.8% 19.7%

ADMINISTRATIVE _______________ ______________

DEPRECIATION & AMORT _______________ ______________ 4.2% 4.2% 4.5% 4.6% 4.8%

OFFICER LIFE _______________ ______________ 0.4% 0.4% 0.4% 0.5% 0.5%

INTEREST _______________ ______________ 2.2% 2.2% 2.3% 2.7% 2.2%

OTHER _______________ ______________ 0.1% 0.1% 0.1% 0.2% 0.1%

TOTAL _______________ ______________ 6.9% 6.9% 7.3% 7.9% 7.6%

TOTAL EXPENSE _______________ ______________ 95.4% 96.5% 96.7% 97.8% 97.4%

PRE TAX PROFIT _______________ ______________ 4.6% 3.5% 3.3% 2.3% 2.6%

# EMPLOYEES _______________ ______________ 6.28 6.34 6.33 6.56 6.79

REVENUE/EMPL _______________ ______________ $130,962 $128,295 $125,227 $113,613 $107,855

COMPENS/EMPL _______________ ______________ $85,295 $85,188 $83,176 $75,382 $71,623

SPREAD _______________ ______________ $45,666 $43,107 $42,051 $38,231 $36,232