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Analysis of Agencies with Revenues
Between $1,250,000 and $2,500,000
REVENUE ANALYSIS
A. % of Revenue by Source
+25% Profit
Commercial P&C
54.0%
49.7%
58.1%
Personal P&C
24.3%
26.6%
18.2%
P&C Service Fees
1.0%
1.2%
1.2%
Contingent
6.3%
6.4%
6.1%
Group L&H
9.2%
10.7%
10.6%
Individual L&H
2.6%
4.3%
4.2%
Investments
0.7%
0.5%
1.0%
Miscellaneous
1.8%
0.5%
0.6%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.6%
0.9%
0.1%
Net Revenues
97.4%
99.1%
99.9%
B. % of Revenues Derived from Largest Accounts
Average +25% Profit
+25% Growth
Largest Commission Account
4.2%
4.2%
4.0%
High
9.9%
Low
1.2%
10 Largest Commission Accounts
18.7%
19.7%
18.8%
High
49.5%
Low
8.5%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
7.1%
$273,129
17.8%
% of Net Revenues
Average
+25% Growth
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
+25% Profit
Page 40
2003 Best Practices Study