2007 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

49.4%

42.1%

55.4%

Bonds

1.8%

3.9%

2.0%

Personal P&C

25.6%

29.6%

21.0%

Value Added Services

0.2%

0.0%

0.0%

Contingent/Bonus

11.2%

12.5%

11.7%

88.1%

88.0%

90.1%

Total P&C

Life & Health/Financial Group Commissions & Fees

6.5%

5.0%

6.3%

Individual Commissions & Fees

2.9%

4.2%

1.3%

Value Added Services

0.3%

0.0%

0.0%

Bonus/Overrides

0.9%

1.5%

0.0%

10.6%

10.7%

7.6%

Total L&H/Financial

Investments

1.0%

1.3%

1.6%

Miscellaneous

0.3%

0.0%

0.7%

100.0%

100.0%

100.0%

Gross Revenues

Brokerage Commission Expense

1.3%

1.6%

0.0%

98.7%

98.4%

100.0%

Net Revenues

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

Personal Lines

73.3% 80.0% 33.3% 40.0% 16.7%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

“I remember thinking, about 5 years ago, ‘wow, this hard market business is really getting old.’ Well, that was then and this is now, but we see now that we’re not as good at selling as we thought we were then.”

35 2007 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses