2008 Best Practices Study

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

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

49.7%

42.7%

40.6%

Bonds

1.2%

0.2%

0.2%

Personal P&C

22.1%

31.1%

31.1%

Value Added Services

1.6%

5.9%

0.0%

Contingent/Bonus

8.3%

8.7%

8.1%

Total P&C

82.8%

88.5%

79.9%

Life & Health/Financial Group Commissions & Fees

11.5%

8.7%

9.7%

Individual Commissions & Fees

3.2%

0.9%

7.6%

Value Added Services

0.1%

0.0%

0.3%

Bonus/Overrides

0.2%

0.2%

0.2%

Total L&H/Financial

15.0%

9.9%

17.9%

Investments

1.7%

1.5%

1.8%

Miscellaneous

0.5%

0.1%

0.4%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.4%

0.0%

0.5%

Net Revenues

98.6%

100.0%

99.5%

Future Revenue Sources % of Agencies Considering Line of Business as Very Important:

Personal Lines

74.1% 40.7% 25.9% 66.7% 25.9%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

62 2008 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses

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