2001 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

3. Personal P&C Producers # Validated Producers

Average

Top 25%

0.9 2.0 0.5

High Low

Average New Comm Produced/Year Average Book Managed (Commissions)

$17,500 $76,470 $26,617

$22,500 $111,210

Average Pay ($)

Average Pay (% of Book Serviced)

34.8%

4. Multi-line Producers # Validated Producers

Average

Top 25%

2.4 6.0 1.0

High Low

Average New Comm Produced/Year Average Book Managed (Commissions)

$45,834 $234,602 $79,057

$88,150 $409,877

Average Pay ($)

Average Pay (% of Book Serviced)

33.7%

* - Insufficient Data

Producer Summary

Average Commissions in Book

Average New Commissions Produced

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000

Commercial P&C Group L&H Personal P&C

Multi-Line

Commercial P&C Group L&H Personal P&C

Multi-Line

Average Top 25%

Average Top 25%

D. Use of Restrictive Covenants

Average

+25% Profit

25%Growth

All producers have signed Some producers have signed

62.9% 2.9% 14.3% 20.0%

44.4% 0.0% 22.2% 33.3%

77.8% 0.0% 22.2%

None have signed

Have no producers except agency owners

0.0%

E. Producer's Ownership in their Book

Average

+25% Profit

25%Growth

14.3% 25.7% 37.1% 22.9%

0.0%

11.1% 22.2% 66.7%

All producers share in ownership of books Some producers share in ownership of books

22.2% 44.4% 33.3%

None share in ownership of books

0.0%

Have no producers except agency owners

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