2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2005

Average

Largest Commission Account

4.2% 5.5% 5.2%

High

17.9%

PROFILE

Low

1.1%

10 Largest Commission Accounts

15.5% 19.9% 20.2%

High

31.1%

REVENUES/ EXPENSES

Low

3.9%

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

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

16.1%

$74,216

4.6%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

9.3% 10.5% 20.2%

Net Revenue Growth (Total)

10.2% 10.8% 21.3%

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

36