2002 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

REVENUE ANALYSIS

A. % of Revenue by Source

Average

+25% Profit

+25% Growth

Commercial P&C

44.5% 35.4%

38.3% 35.5%

41.8% 36.6%

Personal P&C

P&C Service Fees

0.5% 8.2% 5.4% 3.6% 1.7% 0.7%

0.3% 7.6% 6.6% 5.7% 5.2% 0.8%

0.3%

Contingent Group L&H

10.5%

3.4% 3.0% 3.6% 0.9%

Individual L&H Investments Miscellaneous

Total Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.3%

0.8%

0.5%

Net Revenues

98.7%

99.2%

99.5%

Revenue by Source

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% % Total Revenue

0.0% 5.0%

Commercial P&C

Personal P&C P&C Service Fees

Contingent

Group L&H Individual L&H Investments

Average +25% Profit

+25% Growth

Average

+25% Profit

+25% Growth

B. % of Revenues Derived from Largest Accounts

Largest Commission Account

3.3%

2.0%

2.9%

High Low

12.2%

1.2%

10 Largest Commission Accounts

11.4% 31.5%

10.3%

9.0%

High Low

1.6%

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

15.0% % of Net Revenues

Avg. Commissions Acquired

10.7%

$126,582

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