2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

54.8%

55.6%

52.5%

PROFILE

Personal P&C

16.8%

18.6%

22.0%

P&C Service Fees

2.2%

1.9%

1.5%

Contingent

11.3%

13.6%

9.4%

REVENUES/ EXPENSES

Group L&H

11.1%

7.2%

11.3%

Individual L&H

1.7%

0.8%

1.2%

Investments

1.3%

1.4%

1.1%

FINANCIAL STABILITY

Miscellaneous

0.8%

0.8%

1.0%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

3.3%

6.5%

2.9%

EMPLOYEE OVERVIEW

Net Revenues

96.7%

93.5%

97.1%

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

61.8% 58.8% 41.2% 67.6% 52.9%

Small Commercial Lines Individual Life & Health

Group Life & Health Surety & Bonding

2006 Best Practices Study

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