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Analysis of Agencies with Revenues
Greater Than $10,000,000
REVENUE ANALYSIS
A. % of Revenue by Source
+25% Profit
Commercial P&C
61.9%
60.8%
64.3%
Personal P&C
6.9%
7.1%
3.5%
P&C Service Fees
4.4%
2.2%
5.2%
Contingent
6.4%
5.7%
5.6%
Group L&H
16.7%
18.5%
18.0%
Individual L&H
1.6%
2.3%
1.6%
Investments
0.8%
1.2%
0.9%
Miscellaneous
1.3%
2.3%
0.7%
Total Revenues
100.0%
100.0%
100.0%
Brokerage Commission Expense
5.0%
11.0%
4.9%
Net Revenues
95.0%
89.0%
95.1%
B. % of Revenues Derived from Largest Accounts
Average +25% Profit
+25% Growth
Largest Commission Account
2.6%
1.8%
2.3%
High
10.9%
Low
1.2%
10 Largest Commission Accounts
11.1%
9.6%
10.9%
High
35.4%
Low
3.4%
C. Revenues Derived from Acquisitions Made in Last 12 Months
% of Agencies Acquiring
Avg. Commissions Acquired
37.0%
$3,610,218
10.1%
% of Net Revenues
Average
+25% Growth
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
% Total Revenue
Commercial
P&C
Personal P&C P&C Service
Fees
Contingent Group L&H Individual
L&H
Investments
+25% Profit
Page 82
2003 Best Practices Study