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

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

49.4%

50.8%

47.0%

Bonds

2.5%

1.9%

1.6%

Personal P&C

23.4%

27.5%

22.8%

Value Added Services

1.3%

0.2%

0.0%

Contingent/Bonus

10.9%

13.6%

15.6%

Total P&C

87.4%

93.9%

87.1%

Life & Health/Financial Group Commissions & Fees

8.8%

2.7%

7.9%

Individual Commissions & Fees

2.2%

2.4%

3.6%

Value Added Services

0.0%

0.0%

0.0%

Bonus/Overrides

0.6%

0.0%

0.6%

Total L&H/Financial

11.7%

5.1%

12.1%

Investments

0.6%

0.7%

0.5%

Miscellaneous

0.3%

0.3%

0.4%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.1%

0.3%

0.5%

Net Revenues

98.9%

99.7%

99.5%

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

Personal Lines

69.7% 60.6% 21.2% 51.5% 33.3%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

42 2009 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses