2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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

49.8%

43.7%

56.6%

Bonds

2.5%

2.6%

5.5%

Personal P&C

25.7%

38.0%

21.8%

Value Added Services

0.2%

0.0%

0.2%

Contingent/Bonus

10.4%

9.1%

11.1%

88.7%

93.5%

95.1%

Total P&C

Life & Health/Financial Group Commissions & Fees

7.6%

3.0%

2.6%

Individual Commissions & Fees

1.3%

1.4%

0.2%

Value Added Services

0.0%

0.0%

0.0%

Bonus/Overrides

0.0%

0.0%

0.0%

9.2%

4.5%

2.8%

Total L&H/Financial

Investments

1.1%

0.9%

1.0%

Miscellaneous

1.0%

1.1%

1.0%

100.0%

100.0%

100.0%

Gross Revenues

Brokerage Commission Expense

0.9%

1.4%

0.2%

99.1%

98.6%

99.8%

Net Revenues

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

Personal Lines

63.3% 66.7% 23.3% 50.0% 30.0%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

65 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses