2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

56.3%

51.1%

46.6%

PROFILE

Personal P&C

12.1%

17.8%

16.1%

P&C Service Fees

2.4%

2.5%

0.7%

Contingent

10.1%

12.1%

13.1%

REVENUES/ EXPENSES

Group L&H

15.6%

11.5%

20.0%

Individual L&H

1.7%

2.7%

1.6%

Investments

1.4%

2.1%

1.0%

FINANCIAL STABILITY

Miscellaneous

0.5%

0.3%

0.8%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.7%

1.4%

2.2%

EMPLOYEE OVERVIEW

Net Revenues

97.3%

98.6%

97.8%

70%

Average

60%

PRODUCER INFO

+25% Profit

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:

INSURANCE CARRIERS

Personal Lines

51.7% 27.6% 27.6% 86.2% 41.4%

Small Commercial Lines Individual Life & Health

Group Life & Health Surety & Bonding

2006 Best Practices Study

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