2008 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

47.8%

47.4%

56.1%

Bonds

1.7%

4.0%

4.7%

Personal P&C

28.0%

27.7%

22.0%

Value Added Services

0.2%

0.0%

0.0%

Contingent/Bonus

10.6%

12.0%

10.7%

Total P&C

88.4%

91.2%

93.6%

Life & Health/Financial Group Commissions & Fees

6.3%

4.5%

2.7%

Individual Commissions & Fees

2.8%

1.2%

1.0%

Value Added Services

0.5%

1.4%

0.0%

Bonus/Overrides

0.4%

0.0%

0.0%

Total L&H/Financial

10.0%

7.1%

3.7%

Investments

1.3%

1.6%

1.8%

Miscellaneous

0.4%

0.1%

0.9%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.2%

0.0%

1.1%

Net Revenues

98.8%

100.0%

98.9%

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

Personal Lines

77.4% 71.0% 19.4% 45.2% 25.8%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

22 2008 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses