2002 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

REVENUE ANALYSIS

A. % of Revenue by Source

Average

+25% Profit

+25% Growth

Commercial P&C

54.0% 23.4%

54.1% 21.6%

58.2% 16.9%

Personal P&C

P&C Service Fees

2.3% 6.2% 8.7% 2.6% 1.2% 1.6%

6.4% 5.6% 7.6% 2.9% 1.1% 0.6%

6.5% 8.1% 6.4% 2.0% 1.0% 0.9%

Contingent Group L&H

Individual L&H Investments Miscellaneous

Total Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

3.3%

0.9%

2.9%

Net Revenues

96.7%

99.1%

97.1%

Revenue by Source

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

% Total Revenue

0.0%

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

4.4% 9.8% 1.4%

4.8%

4.9%

High Low

10 Largest Commission Accounts

17.1% 40.1%

15.8%

14.7%

High Low

3.8%

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

12.8% % of Net Revenues

Avg. Commissions Acquired

6.7%

$239,462

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