2001 Best Practices Study

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

Revenue by Source

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% % Total Revenue Commercial P&C

Personal P&C P&C Service Fees

Contingent Group L&H Individual L&H

Investments

Average +25% Profit

+25% Growth

Average

+25% Profit

25%Growth

B. % of Revenue by Line of Business

11.3% 6.4% 16.5%

12.3%

12.3% 11.2% 13.1%

Workers Compensation Commercial Liability Commercial Package

6.3%

17.7%

5.2% 3.4% 4.7% 3.0% 3.9% 3.0% 3.9% 3.2%

3.9% 4.2% 4.5% 2.9% 3.5% 2.7% 1.2% 2.6%

3.5% 2.5% 3.7% 2.0% 2.2% 1.5% 0.2% 7.1%

Commercial Auto

Commercial Property Surety/Contract Bonds

Commercial Umbrella/Excess

Personal Auto Homeowners

Personal Package

Third Party Administration

12.9%

13.9%

Other

19.1%

C. Other Products/Services Provided

% Providing +25% Profit

Average

+25% Growth

Claims Adjusting/Administration Self Insurance Programs Risk Management Consulting Pension/Profit Sharing/401(k) Human Resource Consulting Bonding/Surety

82.8% 72.4% 93.1% 96.6% 79.3% 31.0% 31.0% 27.6%

85.7% 57.1% 100.0% 100.0% 71.4% 42.9% 28.6% 14.3%

100.0% 75.0% 87.5% 87.5% 62.5% 50.0% 25.0% 12.5%

Employee Leasing Products & Services (PEOs) Investment Products (Securities, Stocks, etc.)

D. % of Revenues Derived from Largest Accounts

Average

+25% Profit

+25% Growth

Largest Commission Account

3.1%

4.3%

2.8%

High Low

11.1%

1.0%

10 Largest Commission Accounts

12.0% 39.3%

15.7%

11.6%

High Low

4.0%

E. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

7.4% % of Net Revenues

30.0%

$2,495,650

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