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Analysis of Agencies with Revenues
Between $2,500,000 and $5,000,000
REVENUE ANALYSIS
A. % of Revenue by Source
+25% Profit
Commercial P&C
55.2%
57.1%
49.3%
Personal P&C
17.9%
22.7%
21.6%
P&C Service Fees
2.4%
5.9%
6.1%
Contingent
7.1%
7.4%
8.5%
Group L&H
12.6%
4.9%
7.2%
Individual L&H
3.1%
0.5%
5.6%
Investments
1.0%
0.7%
0.9%
Miscellaneous
0.7%
0.8%
0.7%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.1%
0.2%
1.1%
Net Revenues
97.9%
99.8%
98.9%
B. % of Revenues Derived from Largest Accounts
Average
+25% Profit
+25% Growth
Largest Commission Account
4.1%
4.3%
3.2%
High
8.5%
Low
1.2%
10 Largest Commission Accounts
15.5%
15.3%
11.2%
High
29.9%
Low
4.2%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
13.3%
$219,978
4.8%
% 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 55
2003 Best Practices Study