2010 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Mgmt. Perspectives

Revenue Growth by Source

Profile

Average

+25% Profit

+25% Growth

Revenues

Commercial P&C Renewals 1

Expenses

86.2% 11.7% 0.2% -2.2% -2.0% 55.4% 38.0% 0.0% -6.6% -6.6%

84.7% 11.0% 0.5% -4.3% -3.8% 74.6% 23.3% 0.2% -2.1% -1.9%

91.8% 12.8%

New Business 2

Profitability

Acquired Revenues 3 Organic Growth 4

0.0% 4.6% 4.6%

Employee Overview

Total Growth 5

Producer Info

Bonds

Renewals 1

61.9% 48.9%

Staff Service Info

New Business 2

Technology

Acquired Revenues 3 Organic Growth 4

0.0%

10.7% 10.7%

Insurance Carriers

Total Growth 5

Personal P&C

Appendix

Renewals 1

94.2% 10.8%

94.7% 10.3%

96.3% 12.6%

New Business 2

Acquired Revenues 3 Organic Growth 4

1.1% 5.0% 6.1%

1.5% 5.0% 6.5%

1.4% 8.9%

Total Growth 5

10.4%

Value Added Services - P&C Renewals 1

66.1% 25.7% 0.0% -8.2% -8.2%

* * * * *

* * * * *

New Business 2

Acquired Revenues 3 Organic Growth 4

Total Growth 5

*Insufficient Data

1 Renewal Revenues as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results.

2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

“I don’t know where we would be had we not circled back on this cross-selling initiative. New-new business is growing at a snail’s pace and our best successes are coming as we round out the clients we already have. Since we developed a specific plan for how to do this and decided how to reward our producers, the results have been impressive.”

2010 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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