2001 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Revenue by Source

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

% Total Revenue

0.0%

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

13.8% 5.3% 17.2% 8.0% 2.9% 2.1% 2.4% 9.2% 3.6% 1.8% 9.6% 15.8% 17.2% 27.6% 34.5% 86.2% 58.6% 0.0% 27.6% 37.9%

17.3%

15.0%

Workers Compensation Commercial Liability Commercial Package

5.2%

3.3%

18.5% 9.0% 2.4% 3.1% 3.2% 9.9% 0.3% 5.2% 8.8% 11.9% 37.5% 25.0% 50.0% 87.5% 37.5% 0.0% 12.5% 12.5%

16.6%

7.9% 4.2% 1.0% 1.9% 9.2% 7.4% 4.3% 6.6% 9.0%

Commercial Auto

Commercial Property Surety/Contract Bonds

Commercial Umbrella/Excess

Personal Auto Homeowners

Personal Package

Third Party Administration

Other

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

25.0% 37.5% 62.5% 62.5% 37.5% 0.0% 37.5% 62.5%

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

3.7%

3.4%

3.1%

High Low

10.0%

1.1%

10 Largest Commission Accounts

14.1% 34.2%

12.9%

14.6%

High Low

4.6%

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