2001 Best Practices Study

Analysis of Agencies with Revenues Less Than $500,000

Revenue by Source

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% % Total Revenue

0.0% 5.0%

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

5.4% 7.7% 9.2% 5.6% 4.6% 2.2% 12.4% 27.9% 14.7%

4.5%

3.0% 9.9%

Workers Compensation Commercial Liability Commercial Package

14.5% 14.8% 11.3%

11.7% 10.9%

Commercial Auto

7.7% 3.2% 2.7%

8.3% 2.9% 2.4%

Commercial Property Surety/Contract Bonds

Commercial Umbrella/Excess

25.8% 12.2% 13.5%

21.6% 10.4% 13.3%

Personal Auto Homeowners

8.8% 1.4% 2.2%

Personal Package

0.0% 0.0%

4.6% 2.4%

Third Party Administration

Other

C. Other Products/Services Provided

% Providing

Average

+25% Profit

+25% Growth

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

15.8% 10.5% 15.8% 78.9% 47.4% 0.0% 5.3% 15.8%

20.0% 0.0% 0.0% 100.0% 60.0% 0.0% 20.0% 20.0%

33.3% 16.7% 16.7% 83.3% 33.3% 0.0% 0.0% 16.7%

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

3.6% 7.3% 1.1%

3.4%

3.8%

High Low

10 Largest Commission Accounts

10.7% 34.3%

10.8%

11.4%

High Low

1.3%

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

Avg. Commissions Acquired

7.6% % of Net Revenues

8.0%

$30,909

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