2003 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

REVENUE ANALYSIS

Average

+25% Growth

A. % of Revenue by Source

+25% Profit

Commercial P&C

53.3% 17.8%

44.1% 30.0%

61.3% 13.4%

Personal P&C

P&C Service Fees

2.2% 7.3%

1.3%

2.4% 5.7%

Contingent Group L&H

12.1%

14.7%

7.9% 2.3% 2.1% 0.2%

14.5%

Individual L&H Investments Miscellaneous

3.1% 1.0% 0.7%

0.6% 1.2% 0.8%

Total Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.3%

1.7%

4.8%

Net Revenues

97.7%

98.3%

95.2%

70.0%

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

B. % of Revenues Derived from Largest Accounts

Average +25% Profit

+25% Growth

Largest Commission Account

2.5% 4.5% 1.0%

2.0%

2.6%

High Low

10 Largest Commission Accounts

11.0% 16.6%

8.6%

11.3%

High Low

4.0%

C. Revenues Derived from Acquisitions Made in Last 12 Months

% of Agencies Acquiring

Avg. Commissions Acquired

8.8% % of Net Revenues

25.0%

$859,279

Page 69 2003 Best Practices Study