12 / 191
2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
12
Analysis of Agencies with Revenues Under $1,250,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Revenue Growth by Source
(continued)
*Insufficient Data
Average
+25% Profit
+25% Growth
Group Medical L&H
Renewals
1
86.6%
81.7%
74.4%
New Business
2
8.6%
4.3%
14.4%
Acquired Revenues
3
0.0%
0.0%
0.0%
Organic Growth
4
-4.9%
-14.1%
-11.2%
Total Growth
5
-4.9%
-14.1%
-11.2%
All Other Group L&H
Renewals
1
*
*
*
New Business
2
*
*
*
Acquired Revenues
3
*
*
*
Organic Growth
4
*
*
*
Total Growth
5
*
*
*
Individual L&H
Renewals
1
67.3%
73.4%
62.4%
New Business
2
34.1%
27.6%
52.8%
Acquired Revenues
3
0.0%
0.0%
0.0%
Organic Growth
4
1.4%
1.0%
15.3%
Total Growth
5
1.4%
1.0%
15.3%
Total Commissions & Fees
Renewals
89.6%
87.4%
94.7%
New Business
12.4%
13.3%
18.4%
Acquired Revenues
0.2%
0.0%
0.0%
Organic Growth
2.0%
0.7%
13.0%
Total Growth
2.2%
0.7%
13.0%
P&C Contingent Income Growth
-0.8%
-7.3%
40.6%
L&H Bonus Income Growth
*
*
*
Investment Income Growth
-21.5%
*
-21.7
Total Revenue Growth
2.2%
-1.5%
16.8%
Brokerage Commission Expense Growth
*
*
*
Net Revenue Growth (Organic)
2.0%
-1.5%
16.8%
Net Revenue Growth (Total)
2.2%
-1.5%
16.8%
1
Renewal Revenues
as a % of
prior year’s total revenues for this
line of business. This figure is
impacted by attrition (loss or
retention of accounts) and by
changes in premium and
commission levels. The higher the
%, the more favorable the results.
2
New Revenues
as a % of prior
year’s total revenues for this line
of business. The higher the %,
the more favorable the results.
3
Acquired Revenues
as a % of
prior year’s total revenues for
this line of business. The %
indicates the significance of
acquired business.
4
Growth in Revenues
from prior
year excluding acquired
revenues.
5
Growth in Revenues
from prior
year including acquired
revenues.