2007 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

54.9%

53.2%

63.9%

Bonds

1.8%

1.5%

2.2%

Personal P&C

13.1%

17.5%

10.3%

Value Added Services

0.8%

0.5%

1.3%

Contingent/Bonus

8.9%

10.5%

9.6%

Total P&C

79.4%

83.3%

87.3%

Life & Health/Financial Group Commissions & Fees

14.7%

8.3%

7.9%

Individual Commissions & Fees

1.6%

1.1%

1.4%

Value Added Services

0.9%

2.7%

0.0%

Bonus/Overrides

0.8%

0.5%

0.1%

Total L&H/Financial

18.1%

12.7%

9.4%

Investments

1.6%

1.6%

1.6%

Miscellaneous

0.9%

2.4%

1.7%

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.3%

1.4%

2.7%

Net Revenues

98.7%

98.6%

97.3%

Future Revenue Sources % of Agencies Considering Line of Business as Very Important:

Personal Lines

66.7% 33.3% 26.7% 80.0% 33.3%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

121 2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses