2005 Best Practices Study

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

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

+25% Profit

+25% Growth

2005

Average

Commercial P&C

92.4%

81.9%

96.5%

Renewals 1

12.0%

18.2%

13.6%

New Business 2

Acquired Revenues 3

0.0%

0.0%

0.0%

Organic Growth 4

4.4%

0.1%

10.1%

Total Growth 5

4.4%

0.1%

10.1%

PROFILE

Personal P&C

93.6%

87.7%

95.9%

Renewals 1

New Business 2

12.1%

18.6%

15.1%

Acquired Revenues 3

0.0%

0.0%

0.0%

REVENUES/ EXPENSES

Organic Growth 4

5.7%

6.3%

11.0%

Total Growth 5

5.7%

6.3%

11.0%

Renewals 1

*

*

*

P&C Service Fees

New Business 2

*

*

*

Acquired Revenues 3

*

*

*

FINANCIAL STABILITY

*

Organic Growth 4

*

*

*

Total Growth 5

*

*

Group L&H

Renewals 1

90.9%

102.6%

93.1%

New Business 2

12.9%

19.7%

6.6%

EMPLOYEE OVERVIEW

Acquired Revenues 3

0.0%

0.0%

0.0%

Organic Growth 4

3.8%

22.3%

-0.4%

Total Growth 5

3.8%

22.3%

-0.4%

Renewals 1

65.9%

52.5%

94.2%

Individual L&H

PRODUCER INFO

New Business 2

37.6%

47.5%

9.5%

Acquired Revenues 3

0.0%

0.0%

0.0%

Organic Growth 4

3.5%

0.0%

3.7%

Total Growth 5

3.5%

0.0%

3.7%

SERVICE STAFF INFO

Renewals 1

91.7%

84.0%

94.4%

Total Commissions & Fees

New Business 2

14.1%

21.6%

14.7%

Acquired Revenues 3

0.0%

0.0%

0.0%

Organic Growth 4

5.9%

5.7%

9.1%

Total Growth 5

5.9%

5.7%

9.1%

TECHNOLOGY

Contingent Income Growth

-4.4%

*

*

Investment Income Growth

-11.9%

-1.9%

*

Total Revenue Growth

7.8%

7.9%

18.5%

Brokerage Commission Expense Growth

-2.8%

*

*

Net Revenue Growth (Organic)

8.0%

7.9%

18.5%

INSURANCE CARRIERS

Net Revenue Growth (Total)

8.0%

7.9%

18.5%

1 Renewal Revenues as a % of prior year’s total revenues for this 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 %, the more favorable the results. 2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results. 3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % 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.

*Insufficient Data

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