2006 Best Practices Study

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

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2006

Average

Largest Commission Account

3.7% 4.5% 4.3%

High

9.8%

PROFILE

Low

1.1%

10 Largest Commission Accounts

15.4% 12.6% 13.5%

High

32.4%

REVENUES/ EXPENSES

Low

2.3%

C. Revenues Derived from Acquisitions Made in the Last 12 Months

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

16.1%

$68,531

2.4%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

8.3% 11.2% 18.0%

Net Revenue Growth (Total)

8.8% 11.2% 18.1%

SERVICE STAFF INFO

Revenue Growth by Source (as % of Prior Year’s Total Revenues)

Average

+25% Profit

30%

+25% Growth

TECHNOLOGY

20%

10%

0%

INSURANCE CARRIERS

% Total Revenue -10%

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

2006 Best Practices Study

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