2003 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

REVENUE ANALYSIS

A. % of Revenue by Source

+25% Profit

Average

+25% Growth

Commercial P&C

54.0% 24.3%

49.7% 26.6%

58.1% 18.2%

Personal P&C

P&C Service Fees

1.0% 6.3% 9.2% 2.6% 0.7% 1.8%

1.2% 6.4%

1.2% 6.1%

Contingent Group L&H

10.7%

10.6%

Individual L&H Investments Miscellaneous

4.3% 0.5% 0.5%

4.2% 1.0% 0.6%

Total Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.6%

0.9%

0.1%

Net Revenues

97.4%

99.1%

99.9%

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

Average +25% Profit

+25% Growth

B. % of Revenues Derived from Largest Accounts

Largest Commission Account

4.2% 9.9% 1.2%

4.2%

4.0%

High Low

10 Largest Commission Accounts

18.7% 49.5%

19.7%

18.8%

High Low

8.5%

C. Revenues Derived from Acquisitions Made in Last 12 Months

% of Agencies Acquiring

Avg. Commissions Acquired

17.8% % of Net Revenues

7.1%

$273,129

Page 40 2003 Best Practices Study