2000 Best Practices Study

B. % of Revenues Derived from Largest Accounts

Average

+25% Profit

+25% Growth

Largest Commission Account

3.0% 8.0% 1.2%

3.3%

2.6%

High Low High Low

10 Largest Commission Accounts

10.4% 18.4%

11.5%

10.3%

4.1% C. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

55.0% 7.1% 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. $447,197

Average

+25% Profit +25% Growth

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

91.6% 92.1% 69.2% 95.0% 45.5% 77.9%

94.4% 89.6% 72.1% 99.0% 69.7% 93.6%

97.6% 93.3% 11.7% 95.7% 27.4% 93.5%

Group L&H

Individual L&H

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

15.2% 11.8% 23.9% 19.6% 52.1% 17.6%

10.7% 7.9% 14.1% 13.3% 43.9% 12.0%

19.3% 17.1% 45.6% 25.8% 59.9% 23.1%

Group L&H

Individual L&H

Total Commissions & Fees

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

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