2010 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Carriers

Mgmt. Perspectives

Profile

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

Revenues

9.1 9.3

7.5 3.4

5.4 4.5 9.9

Expenses

Regional

Profitability

Total

18.4

10.9

Commercial Lines P&C National

Employee Overview

28.7 21.8 50.5

12.2

22.0 10.2 32.2

Producer Info

Regional

8.6

Total

20.8

Staff Service Info

Group L&H / Financial Total

Technology

48.1

37.4

31.9

Insurance Carriers

12 Month Plans for Carrier Representation P&C Carriers

Appendix

Average

+25% Profit

+25% Growth

% of Agencies That Will: Increase the Number of Carriers Represented Decrease the Number of Carriers Represented Keep the Same Number of Carriers Represented

12.8%

0.0% 0.0%

20.0%

7.7%

0.0%

79.5%

100.0%

80.0%

L&H Carriers

Average

+25% Profit

+25% Growth

% of Agencies That Will: Increase the Number of Carriers Represented Decrease the Number of Carriers Represented Keep the Same Number of Carriers Represented

15.4%

10.0%

20.0%

2.6%

0.0%

0.0%

82.1%

90.0%

80.0%

Revenue from Top Carriers

Average

+25% Profit

+25% Growth

Commission Income Derived from Top Carriers % of Net Rev from Top P&C Carrier

12.0% 24.1%

13.8% 26.2%

16.2% 32.2%

% of Net Rev from Top 3 P&C Carriers % of Net Rev from Top L&H/F Carrier % of Net Rev from Top 3 L&H/F Carrier

7.5%

5.9%

8.4%

12.5%

10.3%

11.5%

Revenues from Top P&C Carrier–Breakdown By Line of Business

2010 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

148