2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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 have a strategic alliance with one carrier, with which we write about 50 – 60% of our business. We are on the coast, and that relationship served us very well when our area was hit by two hurricanes 2 years ago. The relationship has been in place for 20 years, and it served us well.”

Carrier Representation Personal Lines P&C National

4.0 5.1 9.1

6.1 4.9

4.0 4.4 8.4

Regional

11.0

Total

Commercial Lines P&C National

9.2 9.2

11.6

14.9

Regional

6.6

7.0

18.4

18.3

21.9

Total

Employee Benefits Life

5.3 8.3 3.2 3.0 2.1

5.8

6.0 6.2 2.8 2.1 1.0

Health

16.0

LTD

2.4 2.4 4.4

Dental

Retirement Products

22.1

30.9

17.7

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

18.2% 32.9%

19.3% 37.6%

21.5% 39.2%

5.2% 8.6%

3.9% 7.5%

1.2% 2.4%

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

Average

+25% Profit

+25% Growth

Personal 29.1%

Personal 37.9%

Small Commercial 24.9%

Personal 19.5%

Small Commercial 22.1%

Small Commercial 11.4%

Mid/Large Commercial 50.7%

Mid/Large Commercial 55.6%

Mid/Large Commercial 42.1%

86 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Insurance Carriers