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

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

51.9%

54.5%

59.5%

Bonds

2.2%

5.1%

2.3%

Personal P&C

24.8%

21.3%

17.6%

Value Added Services

0.1%

0.1%

0.0%

Contingent/Bonus

11.3%

10.5%

10.0%

Total P&C

90.3%

91.5%

89.5%

Life & Health/Financial Group Commissions & Fees

5.6%

4.2%

6.3%

Individual Commissions & Fees

2.5%

1.5%

1.7%

Value Added Services

0.4%

1.2%

0.5%

Bonus/Overrides

0.1%

0.0%

0.3%

Total L&H/Financial

8.7%

6.8%

8.7%

Investments

0.9%

1.7%

1.9%

Miscellaneous

0.1%

0.0%

-0.2%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

0.4%

0.0%

0.0%

Net Revenues

99.6%

100.0%

100.0%

Future Revenue Sources % of Agencies Considering Line of Business as Very Important:

Personal Lines

81.5% 77.8% 25.9% 40.7% 18.5%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

22 2009 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses