10 / 113
Personal Lines Analysis – Agencies with Revenues Greater Than $1.25M
10
of
113
Personal Lines Analysis: Agencies with Revenues Greater Than $1.25M
This analysis represents the results for agencies with revenues of over $1,250,000 that feel that personal
lines is an important part of their growth and profitability. These operating results provide the Best
Practice standards against which to measure your Personal Lines results.
I. Agency Characteristics
a. Total Agency Size (Net Revenues)
% of group who said Personal Lines is important
$1,250,000 - $2,500,000
65.4%
$2,500,000 - $5,000,000
65.4%
$5,000,000 - $10,000,000
42.9%
Over $10,000,000
31.3%
b. City Population
Less than 50,000
29.2%
50,000 - 250,000
25.0%
250,000 - 1,000,000
22.9%
More than 1,000,000
22.9%
II. Personal Lines Revenue Analysis
a. Average PL Commission Income
$1,108,956
Average +25% Profit +25% Growth
b. % of Net Total Revenues
26.6% 24.5% 21.7%
c. % Renewals
(1)
91.1% 83.2% 87.7%
d. % New Business
(2)
12.2% 12.2% 13.3%
e. % Acquired
(3)
4.1% 6.9%
2.5%
f. Growth Rate: Internal
(4)
3.2% -4.5%
1.0%
Total
(5)
7.3% 2.4%
3.5%
(1)
Renewal Revenues as a percent of prior year’s Personal Lines Total Revenues. This figure is impacted
by attrition (loss or retention of accounts) and by changes in premium and commission levels. The
higher the percentage, the more favorable the results.
(2)
New Revenues as a percent of prior year’s Personal Lines Total Revenues. The higher the percentage,
the more favorable the results.
(3)
Acquired Revenues as a percent of prior year’s Personal Lines Total Revenues. The percentage
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.