2000 Best Practices Study
B. % of Revenues Derived from Largest Accounts
Average
+25% Profit
+25% Growth
Largest Commission Account
3.9% 6.2% 1.2%
4.0%
4.1%
High Low High Low
10 Largest Commission Accounts
13.0% 40.4%
13.7%
13.5%
3.3% C. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring
Avg. Commissions Acquired
% of Net Revenues
4.8%
$12,375
4.7%
D. Renewal Revenue as % of Prior Year's Total Revenues for Each 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 percentage, the more favorable the results.
Average
+25% Profit
+25% Growth
Commercial P&C Personal P&C P&C Service Fees
94.7% 88.4% 50.9% 88.4% 40.0% 88.2%
94.8% 96.4%
97.1% 91.8% 83.5% 71.5% 93.6% *
* *
Group L&H
Individual L&H
64.5% 93.9%
Total Commissions & Fees
E. New Business Revenue as % of Prior Year's Total Revenues for Each Line of Business The higher the percentage, the more favorable the results
Average
+25% Profit
+25% Growth
Commercial P&C Personal P&C P&C Service Fees
14.6% 13.3% 25.0% 18.6% 60.3% 15.8%
17.0% 11.0%
12.5% 9.9% 26.2% 38.4% 15.1% *
* *
Group L&H
Individual L&H
22.9% 14.1%
Total Commissions & Fees
* - Insufficient Data
Analysis of Agencies with Revenues Less than $500,000
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