2003 Best Practices Study

Analysis of Agencies with Revenues Greater Than $10,000,000

REVENUE ANALYSIS

A. % of Revenue by Source

+25% Profit

61.9% 6.9% 4.4% 6.4% 1.6% 0.8% 1.3% 16.7% 100.0% Average

+25% Growth

Commercial P&C

60.8% 7.1% 2.2% 5.7% 2.3% 1.2% 2.3% 18.5% 100.0% 11.0% 89.0%

64.3% 3.5% 5.2% 5.6% 1.6% 0.9% 0.7% 18.0% 100.0%

Personal P&C

P&C Service Fees

Contingent Group L&H

Individual L&H Investments Miscellaneous

Total Revenues

Brokerage Commission Expense

5.0%

4.9%

Net Revenues

95.0%

95.1%

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

Average +25% Profit

+25% Growth

B. % of Revenues Derived from Largest Accounts

Largest Commission Account

2.6%

1.8%

2.3%

High Low

10.9%

1.2%

10 Largest Commission Accounts

11.1% 35.4%

9.6%

10.9%

High Low

3.4%

C. Revenues Derived from Acquisitions Made in Last 12 Months

% of Agencies Acquiring

Avg. Commissions Acquired

10.1% % of Net Revenues

37.0%

$3,610,218

Page 82 2003 Best Practices Study