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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
(% by Source)
Average
+25% Profit
+25% Growth
Property & Casualty
Commercial Commissions & Fees
55.7%
47.2%
60.8%
Bonds
3.4%
2.9%
5.3%
Personal P&C
10.9%
21.1%
3.9%
Value Added Services
2.2%
2.7%
1.9%
Contingent/Bonus
7.1%
7.9%
6.3%
Total P&C
79.3%
81.8%
78.1%
Life & Health/Financial
Group Commissions & Fees
15.1%
13.6%
14.6%
Individual Commissions & Fees
0.7%
1.0%
0.8%
Value Added Services
0.6%
0.0%
1.3%
Bonus/Overrides
0.4%
0.3%
0.3%
Total L&H/Financial
16.9%
14.9%
17.1%
Investments
2.5%
2.1%
2.5%
Miscellaneous
1.3%
1.1%
2.3%
Gross Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
3.5%
2.0%
3.4%
Net Revenues
96.5%
98.0%
96.6%
Revenues
Future Revenue Sources
% of Agencies Considering Line of Business as Very Important:
Personal Lines
44.0%
Small Commercial Lines
48.0%
Individual Life & Health
32.0%
Group Life & Health
80.0%
Surety/Bonding
68.0%
The fastest growing segments of these large agencies were employee benefits and bonds, which grew organically
by 15.4% and 15.2%, respectively. This group had strong organic growth (10.6%) despite the soft market. This
was due to strong retention of 92.9% across all lines (which is outstanding in light of soft P&C pricing) and strong
new business production equal to 17.0% of their overall commissions and fees. Top agencies find a way to
generate new business equal to 15%-20% of their commissions and fees each year.