2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2005

Average

Largest Commission Account

2.9% 2.4% 3.4%

High

10.9%

PROFILE

Low

1.0%

10 Largest Commission Accounts

12.2% 10.6% 12.6%

High

27.3%

REVENUES/ EXPENSES

Low

1.5%

C. Revenues Derived from Acquisitions Made in the Last 12 Months

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

17.2%

$617,773

4.6%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

9.6% 5.5% 18.8%

Net Revenue Growth (Total)

10.5% 6.3% 19.1%

SERVICE STAFF INFO

Revenue Growth by Source (as % of Prior Year’s Total Revenues)

Average

+25% Profit

30%

+25% Growth

TECHNOLOGY

20%

10%

0%

INSURANCE CARRIERS

% Total Revenue -10%

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

84