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