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Analysis of Agencies with Revenues
Less Than $500,000
REVENUE ANALYSIS
A. % of Revenue by Source
Average
+25% Profit
+25% Growth
Commercial P&C
35.8%
35.3%
47.7%
Personal P&C
48.7%
55.3%
41.6%
P&C Service Fees
3.2%
0.0%
0.1%
Contingent
3.7%
2.1%
3.1%
Group L&H
4.7%
4.5%
3.5%
Individual L&H
2.6%
2.6%
0.8%
Investments
0.7%
0.1%
1.5%
Miscellaneous
0.6%
0.1%
1.7%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
1.0%
0.0%
0.7%
Net Revenues
99.0%
100.0%
99.3%
B. % of Revenues Derived from Largest Accounts
Average
+25% Profit
+25% Growth
Largest Commission Account
4.2%
3.7%
4.1%
High
13.5%
Low
1.2%
10 Largest Commission Accounts
12.8%
8.9%
12.7%
High
28.9%
Low
1.9%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
5.9%
$35,076
9.8%
What the Typical Transaction Looked Like:
INSUFFICIENT DATA - CHARTS NOT APPLICABLE
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.
Commercial P&C
93.3%
97.1%
98.7%
Personal P&C
89.8%
100.2%
101.1%
P&C Service Fees
*
*
*
Group L&H
83.9%
66.3%
87.9%
Individual L&H
66.2%
60.0%
66.6%
Total Commissions & Fees
90.7%
94.5%
97.1%
*-Insufficient Data
Average
+25% Profit
+25% Growth
% of Net Revenues
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
% 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
Page 12
2003 Best Practices Study