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172

2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Insurance Carriers

Appendix

Insurance

Carriers

Technology

Service

Staff Info

Producer

Info

Employee

Overview

Financial

Stability

Revenues/

Expenses

Executive

Perspectives

Profile

Agencies with Revenues Over $25,000,000

Carriers

Average +25% Profit +25% Growth

Carrier Representation

Personal Lines P&C

National

12.8

8.0

22.1

Regional

7.2

8.1

3.0

Total

20.0

16.1

25.1

Commercial Lines P&C

National

39.6

19.2

33.4

Regional

39.4

41.9

14.4

Total

78.9

61.0

47.8

Employee Benefits

Life

20.0

19.5

19.5

Health

20.4

20.6

26.5

LTD

13.2

10.4

20.0

Dental

10.1

9.4

14.1

Retirement Products

5.8

3.9

7.4

Total

69.4

63.8

87.6

“We believe our size gives

us a competitive advantage

against both smaller and

larger agents and brokers.

Against smaller brokers we

simply have more volume

and therefore more clout.

Against the public brokers

we typically have better

access to the top executives

of our carriers because our

top executives are directly

engaged – we aren’t stuck

going through the carriers’

middle manager chain of

command.”

Average

+25% Profit

+25% Growth

Commission Income Derived from Top Carriers

% of Net Revenue from Top P&C Carrier

9.6%

11.3%

8.3%

% of Net Revenue from Top 3 P&C Carriers

19.9%

22.1%

17.5%

% of Net Revenue from Top L&H/F Carrier

4.4%

3.6%

3.8%

% of Net Revenue from Top 3 L&H/F Carriers

7.4%

6.6%

7.2%

Revenues from Top P&C Carrier - Breakdown by Line of Business

Average

+25% Profit

+25% Growth

Small

Commercial

10.9%

Small

Commercial

8.3%

Small

Commercial

4.9%

Mid/Large

Commercial

24.8%

Personal

3.1%

Mid/Large

Commercial

77.7%

Personal

38.4%

Mid/Large

Commercial

62.7%

Personal

18.4%