2010 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Mgmt. Perspectives
Revenue Growth by Source (continued)
Profile
Average
+25% Profit
+25% Growth
Revenues
Group Medical L&H Renewals 1
Expenses
88.4% 15.9%
93.7% 22.7%
84.6% 25.3%
New Business 2
Profitability
Acquired Revenues 3 Organic Growth 4
0.0% 4.3% 4.3%
0.0%
0.0% 9.8% 9.8%
Employee Overview
16.4% 16.4%
Total Growth 5
Producer Info
All Other Group L&H Renewals 1
84.7% 12.9% 0.0% -2.3% -2.3% 59.2% 38.5% 0.0% -2.3% -2.3%
* * * * *
91.0% 17.1%
Staff Service Info
New Business 2
Technology
Acquired Revenues 3 Organic Growth 4
0.0% 8.2% 8.2%
Insurance Carriers
Total Growth 5
Individual L&H
Appendix
Renewals 1
56.2% 44.8%
60.3% 44.2%
New Business 2
Acquired Revenues 3 Organic Growth 4
0.0% 1.0% 1.0%
0.0% 4.4% 4.4%
Total Growth 5
Total Commissions & Fees Renewals
87.1% 13.0%
83.8% 14.8% 1.0% -1.4% -0.4%
87.7% 16.0%
New Business
Acquired Revenues
0.9% 0.1% 1.0%
0.0% 3.7% 3.7%
Organic Growth
Total Growth
P&C Contingent Income Growth L&H Bonus Income Growth Investment Income Growth
-0.9% -6.8%
-7.3%
7.3% -3.9%
*
-27.3%
-26.7% -0.6% -7.9% -1.3% -0.3%
-32.8
Total Revenue Growth
1.1% 1.0% 0.2% 1.1%
6.6%
Brokerage Commission Expense Growth
-26.3%
Net Revenue Growth (Organic) Net Revenue Growth (Total)
6.7% 6.7%
*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.
2010 Best Practices Study
Agencies with Revenues Between $2,500,000 and $5,000,000
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