2001 Best Practices Study

Analysis of Agencies with Revenues Greater Than $10,000,000

AGENCY CHARACTERISTICS

A. Average Total Revenues

$24,617,466

B. Corporate Structure

+25% Profit

Average

+25% Growth

C S

48.1% 37.0%

51.5% 30.3%

51.3% 30.8%

Partnership

0.0%

0.0%

0.0%

LLC

11.1%

12.1%

12.8%

Sole Proprietorship

3.7%

6.1%

5.1%

Average

+25% Profit

+25% Growth

C. Shareholders

Number of Shareholders

27.6

28.6

37.3

High Low

188.0

1.0

36.1% 100.0% Average

+25% Profit

+25% Growth

D. Ownership %

% Owned by Largest Shareholder

21.7%

36.3%

High Low

7.0%

Average

+25% Profit

+25% Growth

E. Shareholder Age

Current Age of Largest Shareholder

57.2

59.7

56.3

F. Population Density of Metropolitan Area Where Home Office Is Located

Average

+25% Profit

+25% Growth

Less than 50,000 50,000 - 250,000 250,000 - 1,000,000 More than 1,000,000

3.4%

5.4%

4.5%

20.7% 27.6% 48.3%

16.2% 27.0% 51.4%

15.9% 25.0% 54.5%

REVENUE ANALYSIS

A. % of Revenue by Source

Average 61.0% 7.1% 4.5% 6.4% 1.9% 2.6% 0.9% 15.6% 100.0%

+25% Profit

+25% Growth

Commercial P&C

60.5% 7.7% 1.3% 6.6% 2.4% 3.1% 1.3% 17.2% 100.0%

57.8% 3.8% 7.1% 5.9% 1.3% 2.4% 1.3% 20.5% 100.0%

Personal P&C

P&C Service Fees

Contingent Group L&H

Individual L&H Investments Miscellaneous

Total Revenues

Brokerage Commission Expense

5.2%

7.7%

5.2%

Net Revenues

94.8%

92.3%

94.8%

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