2007 Best Practices Study

Agencies with Revenues Under $1,250,000

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

2.8 3.3 6.1 3.0 3.6 6.6 3.4 4.4 1.3 1.1 1.0

2.6 3.6 6.1 2.1 3.3 5.4 4.1 5.9 1.7 1.2 1.6

3.9 3.3 7.2 3.7 3.3 7.0 3.3 4.1 1.1 1.0 1.3

Regional

Total

“We have good long time staff combined with good carriers that work with us to give us the edge to make us successful.”

Commercial Lines P&C National

Regional

Total

Employee Benefits Life

Health

LTD

Dental

Retirement Products

11.0

14.4

10.8

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

35.6% 55.3%

36.5% 62.8%

37.8% 59.4%

4.1% 6.2%

3.2% 5.9%

3.9% 5.8%

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

Average

+25% Profit

+25% Growth

Personal 38.1%

Personal 29.4%

Personal 52.0%

Mid/Large Commercial 16.3%

Mid/Large Commercial 24.2%

Mid/Large Commercial 20.7%

Small Commercial 46.3%

Small Commercial 39.6%

Small Commercial 40.4%

28

2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Insurance Carriers