2002 Best Practices Study
Analysis of Agencies with Revenues Greater Than $10,000,000
D. Renewal Revenue as % of Prior Year's Total Revenues for Each 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 percentage, the more favorable the results. Average +25% Profit +25% Growth
Commercial P&C
97.2% 94.7% 92.1% 94.2% 53.2% 95.9%
97.2% 98.9% 93.2% 93.0% 76.9% 97.1%
99.1% 95.1% 97.2% 94.8% 39.4% 99.0%
Personal P&C
P&C Service Fees
Group L&H
Individual L&H
Total Commissions & Fees
E. New Business Revenue as % of Prior Year's Total Revenues for Each Line of Business
The higher the percentage, the more favorable the results.
Average
+25% Profit
+25% Growth
Commercial P&C
17.3% 10.2% 14.3% 29.1% 35.9% 18.3%
18.2%
26.1% 11.4% 10.4% 29.9% 53.4% 25.4%
Personal P&C
8.0% 8.5%
P&C Service Fees
Group L&H
31.8% 33.8% 18.2%
Individual L&H
Total Commissions & Fees
F. Acquired Revenue as % of Prior Year's Total Revenues for Each Line of Business
The percentage indicates the significance of the acquired business.
Average
+25% Profit
+25% Growth
Commercial P&C
1.8% 0.8% 1.6% 1.2% 0.0% 2.3%
3.0% 3.7% 0.0% 3.1% 0.0% 2.8%
0.9% 0.0% 0.0% 0.0% 0.0% 1.7%
Personal P&C
P&C Service Fees
Group L&H
Individual L&H
Total Commissions & Fees
G. Growth in Revenues from Prior Year by Source
Average
+25% Profit
+25% Growth
Commercial P&C
16.3%
18.4% 10.6%
26.1%
Personal P&C
5.7% 8.0%
6.4% 7.6%
P&C Service Fees
1.7%
Group L&H
24.6% -10.9% 16.8% 4.6% -7.8% 15.0% 19.5% 12.7% 14.9%
27.9% 10.7% 18.1% 13.1% -13.4% 17.0% 12.4% 14.4% 17.4%
24.6% -7.2% 26.7% 18.4% -6.0% 26.2% 47.1% 24.0% 25.5%
Individual L&H
Total Commission & Fees
Contingent Income Investment Income
Total Revenues
Brokerage Commission Expense
Net Revenues (Internal)
Net Revenues (Total including Acquistion)
94
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