2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 50.2% 37.4%

+25% Growth 54.3% 29.2%

Average

Commercial P&C

48.9% 34.1%

PROFILE

Personal P&C

P&C Service Fees

0.6% 7.7% 5.4% 1.8% 0.3% 1.2%

0.5% 5.2% 4.0% 2.0% 0.4% 0.3%

1.6% 7.5% 3.8% 3.1% 0.2% 0.4%

Contingent Group L&H

REVENUES/ EXPENSES

Individual L&H

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.8%

1.3%

5.2%

EMPLOYEE OVERVIEW

Net Revenues

97.2%

98.7%

94.8%

70%

Average

60%

+25% Profit

PRODUCER INFO

50%

+25% Growth

40%

30%

SERVICE STAFF INFO

20%

% Total Revenue

10%

Commercial P&C

Personal P&C

P&C Service Fees

Contingent

Group L&H

Individual L&H

Investments

TECHNOLOGY

Future Revenue Sources % of Agencies Considering Line of Business as Very Important: Personal Lines 83.3% Small Commercial Lines 76.7% Individual Life & Health 30.0% Group Life & Health 26.7% Surety/Bonding 20.0%

INSURANCE CARRIERS

APPENDIX

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