2001 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

G. New Business Revenue as % of Prior Year's Total Revenues for Each Line of Business

The higher the percentage, the more favorable the results.

Average

+25% Profit

+25% Growth

Commercial P&C

17.0% 13.4% 33.6% 22.4% 54.7% 18.7%

20.0% 10.8% 41.1% 24.6% 75.6% 21.3%

22.7% 15.0%

Personal P&C

P&C Service Fees

*

Group L&H

18.7% 72.9% 22.6%

Individual L&H

Total Commissions & Fees

* - Insufficient Data

H. Acquired Revenue as % of Prior Year's Total Revenues for Each Line of Business

The percentage indicates the significance of the acquired business.

Average

+25% Profit

+25% Growth

Commercial P&C

1.2% 1.9% 0.8% 0.3% 0.3% 1.6%

0.0% 0.0% 0.0% 0.9% 0.0% 0.1%

0.5% 3.4%

Personal P&C

P&C Service Fees

*

Group L&H

1.2% 0.9% 0.8%

Individual L&H

Total Commissions & Fees

*-Insufficient Data

I. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

13.8%

11.0%

22.4%

Personal P&C

8.1% 4.2%

2.4% 6.4%

8.7%

P&C Service Fees

*

Group L&H

20.3%

25.9%

28.3%

Individual L&H

2.8%

2.7%

3.6%

Total Commission & Fees

15.2%

14.4% -6.5% 32.2% 13.3% -4.9% 13.3% 13.5%

23.1% 12.1% 31.1% 23.9%

Contingent Income Investment Income

0.5%

13.3% 14.0% -2.2% 12.8% 14.1%

Total Revenues

Brokerage Commission Expense

7.4%

Net Revenues (Internal)

23.7% 24.4%

Net Revenues (Total including Acquistion)

* - Insufficient Data

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