2001 Best Practices Study

Analysis of Agencies with Revenues Greater Than $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

19.2%

14.8%

25.6% 10.1% 24.7% 27.1%

Personal P&C

9.8%

7.7%

P&C Service Fees

15.3% 24.1% 32.6% 20.9%

16.0% 30.0%

Group L&H

Individual L&H

*

*

Total Commissions & Fees

17.8%

24.4%

* - 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

1.7% 0.4% 0.0% 1.6% 0.0% 3.1%

3.6% 0.6% 0.0% 0.7%

0.0% 0.0% 0.0% 0.0%

Personal P&C

P&C Service Fees

Group L&H

Individual L&H

*

*

Total Commissions & Fees

2.4%

0.5%

*-Insufficient Data

I. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

18.3% 6.0% -1.9% 15.5% -5.7% 15.9%

20.1%

22.9%

Personal P&C

8.5%

6.8%

P&C Service Fees

10.2% 17.8%

10.2% 19.6%

Group L&H

Individual L&H

*

*

Total Commission & Fees

17.2% 24.6% -2.4% 16.5% 16.0% 14.2% 16.6%

23.5% 16.9% 28.2% 23.8% -2.5% 23.4% 23.8%

Contingent Income Investment Income

6.1%

10.4% 14.9%

Total Revenues

Brokerage Commission Expense

3.3%

Net Revenues (Internal)

11.9% 14.9%

Net Revenues (Total including Acquistion)

* - Insufficient Data

135