2003 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
REVENUE ANALYSIS
A. % of Revenue by Source
+25% Profit
Average
+25% Growth
Commercial P&C
55.2% 17.9%
57.1% 22.7%
49.3% 21.6%
Personal P&C
P&C Service Fees
2.4% 7.1%
5.9% 7.4% 4.9% 0.5% 0.7% 0.8%
6.1% 8.5% 7.2% 5.6% 0.9% 0.7%
Contingent Group L&H
12.6%
Individual L&H Investments Miscellaneous
3.1% 1.0% 0.7%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.1%
0.2%
1.1%
Net Revenues
97.9%
99.8%
98.9%
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
4.1% 8.5% 1.2%
4.3%
3.2%
High Low
10 Largest Commission Accounts
15.5% 29.9%
15.3%
11.2%
High Low
4.2%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
4.8% % of Net Revenues
13.3%
$219,978
Page 55 2003 Best Practices Study
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