2003 Best Practices Study

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

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

18.2% 12.4% 53.4% 26.6% 58.2% 21.2%

14.2%

22.2% 13.2% 37.5% 37.9% 30.2% 22.0%

Personal P&C

9.9%

P&C Service Fees

*

Group L&H

14.3% 52.4% 18.2%

Individual L&H

Total Commissions & Fees

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

2.0% 0.7% 0.0% 0.5% 0.0% 3.6%

1.7% 0.7%

1.8% 0.3% 0.0% 0.0% 0.0% 1.4%

Personal P&C

P&C Service Fees

*

Group L&H

0.0% 0.0% 9.1%

Individual L&H

Total Commissions & Fees

G. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

19.6% 12.7% 15.0% 13.1% 16.0% 20.9% 15.0% -20.4% 16.9%

13.3%

31.1% 12.0% -0.9% 20.0% 11.8% 27.0% 11.0% -9.3% 25.9%

Personal P&C

4.7%

P&C Service Fees

*

Group L&H

6.6% 0.6%

Individual L&H

Total Commission & Fees

20.8% 38.1% -2.4% 12.9% -15.4% 13.6% 21.4%

Contingent Income Investment Income

Total Revenues

Brokerage Commission Expense

0.3%

3.8%

Net Revenues (Internal)

16.8% 20.1%

28.8% 30.2%

Net Revenues (Total including Acquistion)

* - Insufficient Data

Page 71 2003 Best Practices Study

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