2000 Best Practices Study

F. Acquired Revenue as % of Prior Year's Total Revenues for Each Line of Business The percentage indicates the significance of the acquired business.

Average +25% Profit

+25% Growth

Commercial P&C Personal P&C P&C Service Fees

1.9% 1.5% 0.0% 1.1% 0.0% 2.1%

0.0% 0.7% 0.0% 0.0% 0.0% 0.4%

1.3% 2.5% 0.0% 4.0% 0.0% 1.9%

Group L&H

Individual L&H

Total Commissions & Fees

G. Growth in Revenues from Prior Year by Source

Average +25% Profit

+25% Growth

Commercial P&C Personal P&C P&C Service Fees

7.2%

4.7%

16.4% 10.3% -27.3% 28.1% 29.1% 18.9% 2.3% 12.1% 18.5% -6.7% 17.7% 19.5%

7.1% -0.1% -20.5% -34.8%

Group L&H

14.8%

3.2%

Individual L&H

18.3% -10.3%

Total Commission & Fees

9.7%

4.6%

Contingent Income Investment Income Total Revenues

9.3% 21.9% 7.0% -8.2%

9.1%

5.8%

Brokerage Commission Expense

1.4% -17.1%

Net Revenues (Internal)

6.9% 8.9%

6.0% 6.3%

Net Revenues (Total including Acquistion)

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

67 of 113