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