2003 Best Practices Study

Analysis of Agencies with Revenues Less Than $500,000

E. New Business Revenue as % of Prior Year's Total Revenues for Each Line of Business The higher the percentage, the more favorable the results

Average

+25% Profit

+25% Growth

Commercial P&C

11.6% 16.6%

12.9% 11.1%

16.2% 20.8%

Personal P&C

P&C Service Fees

*

*

*

Group L&H

25.2% 28.1% 15.3%

45.5% 27.5% 14.5%

6.8%

Individual L&H

16.1% 18.2%

Total Commissions & Fees

*-Insufficient Data

F. Acquired Revenue as % of Prior Year's Total Revenues for Each Line of Business The percentage indicates the significance of the acquired business.

Average

+25% Profit

+25% Growth

Commercial P&C

0.0% 0.7%

0.0% 2.4% 0.0% 0.0% 0.0% 2.4%

0.0% 0.0%

Personal P&C

P&C Service Fees

*

*

Group L&H

0.0% 0.0% 0.7%

0.0% 0.0% 0.0%

Individual L&H

Total Commissions & Fees

*-Insufficient Data

G. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

4.9% 7.1%

10.0% 13.8%

14.9% 21.9%

Personal P&C

P&C Service Fees

*

*

*

Group L&H

9.2% -5.8% 6.7% -4.9%

11.8% -12.5% 11.4% -41.8%

-5.2%

Individual L&H

-17.2% 15.3%

Total Commission & Fees

Contingent Income Investment Income

-1.6%

-18.6%

*

-31.5% 12.7%

Total Revenues

5.2%

11.1%

Brokerage Commission Expense

-22.1%

*

*

Net Revenues (Internal)

6.0% 6.7%

8.7%

17.7% 17.7%

Net Revenues (Total including Acquistion)

11.1%

*-Insufficient Data

Page 13 2003 Best Practices Study