2001 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

Revenue by Source

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

% Total Revenue

0.0%

Commercial P&C

Personal P&C P&C Service Fees

Contingent Group L&H Individual L&H

Investments

Average +25% Profit

+25% Growth

Average

+25% Profit

25%Growth

B. % of Revenue by Line of Business

8.7% 5.8% 17.9% 12.1%

12.5%

13.7%

Workers Compensation Commercial Liability Commercial Package

5.5%

5.8%

13.0% 17.3% 4.5% 3.0% 2.0% 9.5% 1.8% 0.0% 4.1% 17.7% 0.0% 14.3% 0.0% 71.4% 57.1% 0.0% 42.9% 28.6%

22.9% 13.9%

Commercial Auto

5.5% 1.8% 2.2%

7.0% 3.7% 3.1%

Commercial Property Surety/Contract Bonds

Commercial Umbrella/Excess

20.5% 13.3%

22.0% 11.4%

Personal Auto Homeowners

3.6% 0.0% 7.4%

6.6% 0.0% 2.8%

Personal Package

Third Party Administration

Other

C. Other Products/Services Provided

% Providing +25% Profit

Average

+25% Growth

Claims Adjusting/Administration Self Insurance Programs Risk Management Consulting Pension/Profit Sharing/401(k) Human Resource Consulting Bonding/Surety

12.9% 12.9% 12.9% 87.1% 54.8% 6.5% 22.6% 35.5%

11.1% 11.1% 33.3% 88.9% 44.4% 11.1% 33.3% 22.2%

Employee Leasing Products & Services (PEOs) Investment Products (Securities, Stocks, etc.)

D. % of Revenues Derived from Largest Accounts

Average

+25% Profit

+25% Growth

Largest Commission Account

4.1%

3.5%

5.1%

High Low

13.0%

1.0%

10 Largest Commission Accounts

12.7% 31.1%

12.7%

17.6%

High Low

1.6%

E. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

0.0%

$0

0.0%

What the Typical Transaction Looked Like:

NO ACQUISITIONS REPORTED - CHARTS NOT APPLICABLE

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