2006 Best Practices Study
AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000
B.
% of Revenues Derived from Largest Accounts
+25% Profit
+25% Growth
2006
Average
Largest Commission Account
3.7% 4.5% 4.3%
High
9.8%
PROFILE
Low
1.1%
10 Largest Commission Accounts
15.4% 12.6% 13.5%
High
32.4%
REVENUES/ EXPENSES
Low
2.3%
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%
$68,531
2.4%
EMPLOYEE OVERVIEW
D.
Net Revenue Growth
+25% Profit
+25% Growth
Average
PRODUCER INFO
Net Revenue Growth (Organic)
8.3% 11.2% 18.0%
Net Revenue Growth (Total)
8.8% 11.2% 18.1%
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
2006 Best Practices Study
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