2007 Best Practices Study

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

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

“We are not getting rid of small accounts, but we are being smarter in the way we handle them. We put some in a service center. Others we handle, but do so with two carriers

5.5 6.4

4.0 7.8

4.3 5.1 9.4

Regional

11.9

11.8

Total

Commercial Lines P&C National

9.9

3.8

5.8

Regional

15.7 25.7

14.0 17.8

14.6 20.4

Total

Employee Benefits Life

8.7

6.5 6.8 2.8 2.0 2.0

8.4 7.1 2.8 3.8 1.5

that direct bill and offer quality BOP products.”

Health

10.7

LTD

4.7 5.2 1.8

Dental

Retirement Products

31.1

20.1

23.6

Total

Average

+25% Profit

+25% Growth

Commission Income Derived from Top Carriers % of Net Revenue from Top P&C Carrier % of Net Revenue from Top 3 P&C Carriers % of Net Revenue from Top L&H/F Carrier % of Net Revenue from Top 3 L&H/F Carriers

14.3% 28.3%

17.9% 35.9%

12.9% 26.4%

5.3% 8.1%

3.9% 6.5%

4.4% 7.6%

Revenues from Top P&C Carrier - Breakdown by Line of Business

Average

+25% Profit

+25% Growth

Personal 50.3%

Personal 29.2%

Personal 32.7%

Small Commercial 18.0%

Small Commercial 21.4%

Mid/Large Commercial 33.8%

Small Commercial 15.9%

Mid/Large Commercial 40.3%

Mid/Large Commercial 39.2%

114 2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Insurance Carriers