2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

51.1%

48.3%

53.6%

PROFILE

Personal P&C

21.7%

32.4%

25.8%

P&C Service Fees

0.9%

1.3%

0.4%

Contingent

9.9%

7.9%

11.0%

REVENUES/ EXPENSES

Group L&H

11.8%

7.9%

6.7%

Individual L&H

2.8%

0.8%

1.0%

Investments

1.2%

0.7%

1.0%

FINANCIAL STABILITY

Miscellaneous

0.6%

0.6%

0.4%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.1%

3.5%

2.7%

EMPLOYEE OVERVIEW

Net Revenues

97.9%

96.5%

97.3%

70%

Average

60%

PRODUCER INFO

+25% Profit

50%

+25% Growth

40%

30%

SERVICE STAFF INFO

20%

% Total Revenue

10%

Commercial P&C

Personal P&C

P&C Service Fees

Contingent

Group L&H

Individual L&H

Investments

TECHNOLOGY

Future Revenue Sources

% of Agencies Considering Line of Business as Very Important:

INSURANCE CARRIERS

Personal Lines

71.0% 64.5% 29.0% 61.3% 29.0%

Small Commercial Lines Individual Life & Health

Group Life & Health Surety & Bonding

2006 Best Practices Study

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