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Personal Lines Analysis – Agencies with Revenues Less Than $1.25M
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Personal Lines Analysis: Agencies with Revenues Less Than $1.25M
This analysis represents the results for agencies with revenues under $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
Less than $500,000
81.0%
$500,000 - $1,250,000
65.2%
b. City Population
Less than 50,000
75.0%
50,000 - 250,000
15.6%
250,000 - 1,000,000
3.1%
More than 1,000,000
6.3%
II. Personal Lines Revenue Analysis
a. Average PL Commission Income
$243,611
Average +25% Profit +25% Growth
b. % of Net Total Revenues
48.3% 41.6% 45.3%
c. % Renewals
(1)
88.3% 97.3% 97.5%
d. % New Business
(2)
13.9% 14.4% 11.9%
e. % Acquired
(3)
0.3% 0.0%
0.7%
f. Growth Rate: Internal
(4)
2.2% 11.8%
9.4%
Total
(5)
2.6% 11.8% 10.1%
(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.