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2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses
Agencies with Revenues Between $10,000,000 and $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Revenue Growth by Source
(continued)
*Insufficient Data
Average +25% Profit +25% Growth
Value Added Services - L&H
Renewals
99.6%
*
*
New Business
5.2%
*
*
Acquired Revenues
0.0%
*
*
Organic Growth
4.7%
*
*
Total Growth
4.7%
*
*
Total Commissions & Fees
Renewals
94.8% 98.6% 99.5%
New Business
20.7% 18.9% 29.7%
Acquired Revenues
1.0%
0.0%
2.8%
Organic Growth
15.5% 17.6% 29.2%
Total Growth
16.5% 17.6% 32.0%
P&C Contingent Income Growth
15.2%
9.1%
32.3%
L&H Bonus Income Growth
24.4%
*
*
Investment Income Growth
26.8% 26.5% 57.3%
Total Revenue Growth
17.3% 20.4% 34.1%
Brokerage Commission Expense Growth
-12.7% -2.6%
-1.8%
Net Revenue Growth (Organic)**
17.0% 20.4% 33.4%
Net Revenue Growth (Total)
17.9% 20.4% 35.9%
Future Revenue Growth Strategies
% of Total Responses
Study participants were asked
to indicate their three most
important strategies for
enhancing or achieving future
revenue growth.
1
2
3
Access to Better Carriers
0.0% 0.0% 3.3%
Advertising/Promotions
0.0% 6.7% 0.0%
Agency/Book of Business Acquisitions
6.7% 10.0% 16.7%
Cross-Selling/Total Account Development
0.0% 6.7% 13.3%
Producer Recruitment/Development
46.7% 23.3% 10.0%
New Business Initiatives—Prog Dev/Niche Marketing
13.3% 30.0% 20.0%
New Business Initiatives—Referrals/Centers of Influence 23.3% 16.7% 20.0%
New Business Initiatives—Strategic Alliances
3.3% 3.3% 10.0%
Other*
6.7% 3.3% 6.7%
With:
1
—Critically Important
2
—Very Important
3
—Important
*Includes website marketing/sales, expanded geographic footprint, higher retention, creating a captive, better support/CSR training &
recruiting, value added services
**Organic growth rates
for the most recently
completed fiscal year
varied widely by region
due in part to the effect
of Hurricane Katrina on
coastal exposure pricing.
As a result, the AVERAGE
organic growth rates
achieved by the Best
Practices Agencies were
skewed upward. As
such, readers of this
study might prefer to
benchmark off of the
MEDIAN organic growth
rate, which is the mid-
point of the data when
the results are ranked in
descending order.
MEDIAN
Organic Growth Rate:
13.8%