2010 Best Practices Study

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

Mgmt. Perspectives

Revenues

Profile

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

48.4%

49.7%

38.6%

Profitability

Bonds

1.1%

0.8%

0.4%

Personal Commissions Value Added Services

21.6%

26.0%

26.7%

Employee Overview

0.5% 8.5%

0.8%

0.4% 8.9%

Producer Info

Contingent/Bonus

10.0% 87.3%

Staff Service Info

Total P&C

80.1%

75.0%

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

Technology

12.4%

8.0% 1.7% 1.0% 0.4%

14.8%

Insurance Carriers

2.2% 3.1% 0.6%

2.8% 5.5% 0.8%

Appendix

Bonus/Overrides

Total L&H/Financial

18.3%

11.0%

23.9%

Investments

0.7% 0.8%

0.7% 0.6%

0.2% 0.4%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.6%

0.4%

2.3%

Net Revenues

98.4%

99.6%

97.7%

Revenue by Source (% of Gross Revenues)

2010 Best Practices Study

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

96