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Analysis of Agencies with Revenues
Between $5,000,000 and $10,000,000
REVENUE ANALYSIS
A. % of Revenue by Source
+25% Profit
Commercial P&C
53.3%
44.1%
61.3%
Personal P&C
17.8%
30.0%
13.4%
P&C Service Fees
2.2%
1.3%
2.4%
Contingent
7.3%
12.1%
5.7%
Group L&H
14.7%
7.9%
14.5%
Individual L&H
3.1%
2.3%
0.6%
Investments
1.0%
2.1%
1.2%
Miscellaneous
0.7%
0.2%
0.8%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
2.3%
1.7%
4.8%
Net Revenues
97.7%
98.3%
95.2%
B. % of Revenues Derived from Largest Accounts
Average +25% Profit
+25% Growth
Largest Commission Account
2.5%
2.0%
2.6%
High
4.5%
Low
1.0%
10 Largest Commission Accounts
11.0%
8.6%
11.3%
High
16.6%
Low
4.0%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
25.0%
$859,279
8.8%
% of Net Revenues
Average
+25% Growth
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
% Total Revenue
Commercial
P&C
Personal P&C P&C Service
Fees
Contingent Group L&H Individual
L&H
Investments
+25% Profit
Page 69
2003 Best Practices Study