2003 Best Practices Study
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
D. Renewal Revenue as % of Prior Year's Total Revenues for Each Line of Business This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the percentage, the more favorable the results.
Average
+25% Profit
+25% Growth
Commercial P&C
99.7% 94.5% 71.0% 92.3% 61.1% 97.4%
100.3% 88.9% 57.0% 99.8% 54.0% 99.7%
102.9% 94.0% 75.8% 88.2%
Personal P&C
P&C Service Fees
Group L&H
Individual L&H
*
Total Commissions & Fees
101.7%
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
16.6% 11.2% 26.7% 21.0% 39.8% 15.7%
20.2% 13.1% 35.2%
22.7%
Personal P&C
9.8%
P&C Service Fees
49.9% 29.9%
Group L&H
9.4%
Individual L&H
53.8% 17.8%
*
Total Commissions & Fees
21.9%
* - 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
2.2% 0.1% 0.0% 0.0% 0.0% 1.5%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
Personal P&C
P&C Service Fees
Group L&H
Individual L&H
*
Total Commissions & Fees
0.0%
G. Growth in Revenues from Prior Year by Source
Average
+25% Profit
+25% Growth
Commercial P&C
18.5% 5.8% -2.3% 13.3%
20.5% 2.0% -7.8% 9.2% 7.8% 17.5% -0.7% -29.1% 18.0%
25.6%
Personal P&C
3.8%
P&C Service Fees
25.7% 18.0%
Group L&H
Individual L&H
0.9%
*
Total Commission & Fees
14.6%
23.7% 12.3% -15.4% 23.1%
Contingent Income Investment Income
4.3%
-29.4% 14.4%
Total Revenues
Brokerage Commission Expense
3.9%
*
*
Net Revenues (Internal)
14.1% 15.6%
18.1% 18.1%
30.8% 30.8%
Net Revenues (Total including Acquistion)
* - Insufficient Data
Page 42 2003 Best Practices Study
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