2008 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

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

52.5%

53.4%

53.9%

Bonds

2.0%

2.4%

1.4%

Personal P&C

12.6%

18.2%

11.8%

Value Added Services

0.5%

0.2%

0.5%

Contingent/Bonus

9.8%

12.5%

9.6%

Total P&C

77.4%

86.6%

77.2%

Life & Health/Financial Group Commissions & Fees

16.4%

8.4%

17.3%

Individual Commissions & Fees

1.4%

1.1%

1.5%

Value Added Services

1.0%

0.0%

0.5%

Bonus/Overrides

1.3%

0.4%

1.8%

Total L&H/Financial

20.1%

9.9%

21.1%

Investments

1.8%

2.2%

1.3%

Miscellaneous

0.6%

1.3%

0.4%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.3%

1.0%

2.2%

Net Revenues

98.7%

99.0%

97.8%

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

Personal Lines

56.1% 34.1% 31.7% 85.4% 51.2%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

82 2008 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses