2007 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

50.5%

39.8%

51.4%

Bonds

0.9%

0.2%

0.5%

Personal P&C

19.8%

31.9%

15.1%

Value Added Services

1.5%

03%

0.2%

Contingent/Bonus

9.4%

11.9%

8.4%

Total P&C

82.0%

84.1%

75.6%

Life & Health/Financial Group Commissions & Fees

11.6%

8.5%

14.0%

Individual Commissions & Fees

3.3%

2.8%

5.1%

Value Added Services

0.1%

0.0%

0.2%

Bonus/Overrides

0.4%

0.7%

0.9%

Total L&H/Financial

15.5%

11.9%

20.2%

Investments

1.7%

1.9%

2.0%

Miscellaneous

0.8%

2.0%

2.2%

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.2%

0.2%

0.3%

Net Revenues

98.8%

99.8%

99.7%

Future Revenue Sources % of Agencies Considering Line of Business as Very Important:

Personal Lines

66.7% 50.0% 40.0% 76.7% 30.0%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

93 2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses