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

1.3%

4.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

4.1% 11.0%

0.0% 0.7% 0.0% 1.1%

0.0% 2.0% 0.0% 3.6%

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

8.1% 8.0%

9.1% 8.5%

16.9% 10.5% -42.7% 21.5% -12.7% 16.5% 9.8% 10.4% 16.9% 29.2% 17.1% 17.1%

-6.9% -13.7% 15.3% 14.3% -2.3% 13.6% 9.4% -0.2% -10.4% -19.3% 10.0% 9.2%

Group L&H

Individual L&H

Total Commission & Fees

Contingent Income Investment Income Total Revenues

9.1%

7.8%

Brokerage Commission Expense

8.4% 30.4%

Net Revenues (Internal)

8.1% 9.1%

4.7% 7.8%

Net Revenues (Total including Acquistion)

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

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