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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

“We have some really great companies that we represent, but I have to tell you, for some, we’re not sure what they really want from us. It makes it very tough to invest in a certain business target or niche if carrier appetites change from day-to- day.”

8.9 5.2

5.0 1.8 6.8

4.3 3.6 7.9

Regional

14.1

Total

Commercial Lines P&C National

19.8 16.0 35.8

9.9 5.4

10.9 11.0 21.9

Regional

15.3

Total

Employee Benefits Life

11.7 11.8

4.9 8.4 5.1 3.5 2.4

6.3 6.1 3.8 3.8 1.3

Health

LTD

7.0 6.3 2.3

Dental

Retirement Products

39.1

24.3

21.2

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

12.6% 23.7%

17.2% 28.2%

13.1% 25.0%

5.1% 9.4%

2.4% 5.2%

3.5% 7.5%

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

Average

+25% Profit

+25% Growth

Small Commercial 21.5%

Small Commercial 16.0%

Small Commercial 16.2%

Personal 25.6%

Personal 16.0%

Personal 22.9%

Mid/Large Commercial 60.8%

Mid/Large Commercial 58.2%

Mid/Large Commercial 61.3%

142 2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Insurance Carriers