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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