2002 Best Practices Study

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

REVENUE ANALYSIS

A. % of Revenue by Source

Average 60.4% 6.7% 5.2% 6.3% 1.4% 1.8% 0.8% 17.4% 100.0%

+25% Profit

+25% Growth

Commercial P&C

61.5% 10.5%

65.4% 2.6% 5.1% 5.9% 1.1% 1.4% 0.8% 17.7% 100.0%

Personal P&C

P&C Service Fees

4.8% 6.5%

Contingent Group L&H

11.8%

Individual L&H Investments Miscellaneous

1.8% 2.2% 0.9%

Total Revenues

100.0% 10.8% 89.2%

Brokerage Commission Expense

4.8%

3.9%

Net Revenues

95.2%

96.1%

Revenue by Source

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% % Total Revenue 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

3.2%

3.5%

2.6%

High Low

12.4%

1.5%

10 Largest Commission Accounts

12.2% 32.8%

12.1%

12.9%

High Low

3.2%

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

Avg. Commissions Acquired

5.9% % of Net Revenues

30.0%

$2,052,763

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