2000 Best Practices Study

B. % of Revenues Derived from Largest Accounts

Average

+25% Profit

+25% Growth

Largest Commission Account

3.3% 12.7% 1.2% 12.2% 40.4%

5.5%

4.8%

High Low High Low

10 Largest Commission Accounts

23.2%

17.8%

3.5% C. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

43.8%

$2,648,966

7.5%

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

93.8% 94.8% 95.8% 85.1% 58.1% 86.4%

103.1% 94.1% 86.0% 85.0%

101.2% 93.7% 95.6% 110.0%

Group L&H

Individual L&H

*

*

Total Commissions & Fees

99.1%

102.3%

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

16.4% 10.2% 20.0% 21.3% 33.8% 20.2%

13.3% 8.9% 10.1% 25.5%

15.3% 9.9% 42.3% 10.9%

Group L&H

Individual L&H

*

*

Total Commissions & Fees

15.4%

19.2%

* - Insufficient Data

Analysis of Agencies with Revenues Greater Than $10,000,000

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