2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2005

Average

Largest Commission Account

3.8% 4.7% 3.5%

High

12.6%

PROFILE

Low

1.0%

10 Largest Commission Accounts

13.4% 14.1% 10.5%

High

48.6%

REVENUES/ EXPENSES

Low

3.0%

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

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

27.3%

$423,264

5.7%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

8.7% 4.0% 16.7%

Net Revenue Growth (Total)

10.2% 5.2% 19.6%

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

68