2003 Best Practices Study

Analysis of Agencies with Revenues Greater Than $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

19.7% 11.3% 19.8% 21.9% 55.0% 20.3%

22.8%

25.4%

Personal P&C

8.2%

9.6%

P&C Service Fees

*

14.5% 27.8% 55.3% 25.5%

Group L&H

28.8% 50.0% 23.0%

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

5.9% 5.4% 0.0% 1.4% 0.0% 5.5%

12.1%

3.9% 0.0% 0.0% 2.8% 0.0% 3.1%

Personal P&C

0.4%

P&C Service Fees

*

Group L&H

0.2% 0.0% 9.7%

Individual L&H

Total Commissions & Fees

G. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

22.8% 10.8% -2.9% 15.3% 19.6% 20.6% -27.0% 18.7% 22.0% 13.0% 18.2% 5.7%

29.5%

29.6% 7.3% -9.0% 21.7% 25.6% 37.7% -15.5% 25.1% 29.5% 22.0% 24.8% 1.2%

Personal P&C

4.4%

P&C Service Fees

*

Group L&H

25.6%

Individual L&H

8.9%

Total Commission & Fees

24.4% 14.6% -16.5% 24.2% 24.6% 13.9% 22.8%

Contingent Income Investment Income

Total Revenues

Brokerage Commission Expense

Net Revenues (Internal)

Net Revenues (Total including Acquistion)

* - Insufficient Data

Page 84 2003 Best Practices Study