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2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Insurance Carriers
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Between $2,500,000 and $5,000,000
Carriers
Average +25% Profit +25% Growth
Carrier Representation
Personal Lines P&C
National
4.0
6.1
4.0
Regional
5.1
4.9
4.4
Total
9.1
11.0
8.4
Commercial Lines P&C
National
9.2
11.6
14.9
Regional
9.2
6.6
7.0
Total
18.4
18.3
21.9
Employee Benefits
Life
5.3
5.8
6.0
Health
8.3
16.0
6.2
LTD
3.2
2.4
2.8
Dental
3.0
2.4
2.1
Retirement Products
2.1
4.4
1.0
Total
22.1
30.9
17.7
“We have a strategic
alliance with one
carrier, with which we
write about 50 – 60%
of our business. We
are on the coast, and
that relationship served
us very well when our
area was hit by two
hurricanes 2 years ago.
The relationship has
been in place for 20
years, and it served us
well.”
Revenues from Top P&C Carrier - Breakdown by Line of Business
Small
Commercial
22.1%
Small
Commercial
11.4%
Small
Commercial
24.9%
Mid/Large
Commercial
50.7%
Personal
19.5%
Mid/Large
Commercial
55.6%
Personal
37.9%
Mid/Large
Commercial
42.1%
Personal
29.1%
Average
+25% Profit
+25% Growth
Average
+25% Profit
+25% Growth
Commission Income Derived from Top Carriers
% of Net Revenue from Top P&C Carrier
18.2%
19.3%
21.5%
% of Net Revenue from Top 3 P&C Carriers
32.9%
37.6%
39.2%
% of Net Revenue from Top L&H/F Carrier
5.2%
3.9%
1.2%
% of Net Revenue from Top 3 L&H/F Carriers
8.6%
7.5%
2.4%