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
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