2003 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

REVENUE ANALYSIS

A. % of Revenue by Source

+25% Profit

Average

+25% Growth

Commercial P&C

44.5% 37.6%

38.6% 35.9%

51.6% 34.6%

Personal P&C

P&C Service Fees

0.6% 8.2% 4.0% 3.6% 1.0% 0.6%

0.5%

1.4% 6.9% 3.2% 2.0% 0.2% 0.1%

Contingent Group L&H

11.5%

3.8% 6.4% 2.7% 0.5%

Individual L&H Investments Miscellaneous

Total Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.4%

0.0%

0.0%

Net Revenues

98.6%

100.0%

100.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

% Total Revenue

0.0%

Commercial P&C

Personal P&C P&C Service Fees

Contingent Group L&H Individual L&H

Investments

+25% Profit

B. % of Revenues Derived from Largest Accounts

Average +25% Profit

+25% Growth

Largest Commission Account

4.0%

2.8%

4.5%

High Low

15.6%

1.3%

10 Largest Commission Accounts

13.5% 36.7%

11.4%

15.6%

High Low

2.2%

C. Revenues Derived from Acquisitions Made in Last 12 Months

% of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

0.0%

$0

0.0%

What the Typical Transaction Looked Like:

NO DATA AVAILABLE

Page 26 2003 Best Practices Study