2000 Best Practices Study

Personal Lines Analysis: Agencies with Revenues Greater Than $1.25M This analysis represents the results for agencies with revenues of over $1,250,000 that feel that personal lines is an important part of their growth and profitability. These operating results provide the Best Practice standards against which to measure your Personal Lines results.

I. Agency Characteristics a. Total Agency Size (Net Revenues)

% of group who said Personal Lines is important $1,250,000 - $2,500,000

65.4% 65.4% 42.9% 31.3%

$2,500,000 - $5,000,000 $5,000,000 - $10,000,000

Over $10,000,000

b. City Population Less than 50,000

29.2% 25.0% 22.9% 22.9%

50,000 - 250,000 250,000 - 1,000,000 More than 1,000,000

II. Personal Lines Revenue Analysis a. Average PL Commission Income

$1,108,956

Average +25% Profit +25% Growth 26.6% 24.5% 21.7% 91.1% 83.2% 87.7% 12.2% 12.2% 13.3%

b. % of Net Total Revenues

c. % Renewals (1)

d. % New Business (2)

e. % Acquired (3)

4.1% 6.9% 3.2% -4.5% 7.3% 2.4%

2.5% 1.0%

f. Growth Rate: Internal (4)

Total (5)

3.5% (1) Renewal Revenues as a percent of prior year’s Personal Lines Total Revenues. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the percentage, the more favorable the results. (2) New Revenues as a percent of prior year’s Personal Lines Total Revenues. The higher the percentage, the more favorable the results. (3) Acquired Revenues as a percent of prior year’s Personal Lines Total Revenues. The percentage 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.

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Personal Lines Analysis – Agencies with Revenues Greater Than $1.25M