2007 Best Practices Study

Agencies with Revenues Over $25,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Carriers

Average +25% Profit +25% Growth

“We believe our size gives us a competitive advantage against both smaller and larger agents and brokers. Against smaller brokers we simply have more volume and therefore more clout. Against the public brokers we typically have better access to the top executives of our carriers because our top executives are directly engaged – we aren’t stuck going through the carriers’ middle manager chain of command.”

Carrier Representation Personal Lines P&C National

12.8

8.0 8.1

22.1

Regional

7.2

3.0

20.0

16.1

25.1

Total

Commercial Lines P&C National

39.6 39.4 78.9 20.0 20.4 13.2 10.1

19.2 41.9 61.0

33.4 14.4 47.8 19.5 26.5 20.0 14.1

Regional

Total

Employee Benefits Life

19.5 20.6 10.4

Health

LTD

Dental

9.4 3.9

Retirement Products

5.8

7.4

69.4

63.8

87.6

Total

Average

+25% Profit

+25% Growth

Commission Income Derived from Top Carriers % of Net Revenue from Top P&C Carrier % of Net Revenue from Top 3 P&C Carriers % of Net Revenue from Top L&H/F Carrier % of Net Revenue from Top 3 L&H/F Carriers

9.6%

11.3% 22.1%

8.3%

19.9%

17.5%

4.4% 7.4%

3.6% 6.6%

3.8% 7.2%

Revenues from Top P&C Carrier - Breakdown by Line of Business

Average

+25% Profit

+25% Growth

Small Commercial 10.9%

Personal 18.4%

Personal 38.4%

Small Commercial 4.9%

Personal 3.1%

Mid/Large Commercial 24.8%

Small Commercial 8.3%

Mid/Large Commercial 77.7%

Mid/Large Commercial 62.7%

172

2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Insurance Carriers