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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