2003 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

22.0% 14.6% 29.8% 31.0% 48.0% 19.5%

25.0% 15.3% 51.2% 42.2% 71.9% 22.7%

20.7% 12.4% 35.4% 39.0% 44.4% 20.9%

Personal P&C

P&C Service Fees

Group L&H

Individual L&H

Total Commissions & Fees

*-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

0.6% 1.6% 0.0% 0.2% 0.0% 0.9%

1.3% 5.9% 0.0% 0.0% 0.0% 2.2%

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

*-Insufficient Data

G. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

17.7%

21.0% 18.9% -8.8% 12.8% -5.3% 21.5% 21.3% -45.5% 20.5% 16.0% 18.6% 20.6%

26.2%

Personal P&C

7.6%

9.0% 1.0%

P&C Service Fees

-16.8% 11.3%

Group L&H

17.7%

Individual L&H

0.2%

8.1%

Total Commission & Fees

16.9% 24.1% -22.3% 15.7%

25.9% 24.2% -40.3% 27.2%

Contingent Income Investment Income

Total Revenues

Brokerage Commission Expense

5.7%

*

Net Revenues (Internal)

13.6% 14.4%

26.6% 26.6%

Net Revenues (Total including Acquistion)

*-Insufficient Data

Page 57 2003 Best Practices Study