2001 Best Practices Study

SPECIAL PERSONAL LINES ANALYSIS Agencies with Revenues Greater Than $1,250,000

AGENCY CHARACTERISTICS

This analysis represents the results for agencies with revenues of over $1,250,000 that feel that personal lines is an important part of their growth and profitability. These operating results provide the Best Practices standards against which to measure your Personal Lines

results.

A. Percentage of Group Who Said Personal Lines is Important Agencies with Net Revenues of: $1,250,000 - $2,500,000

43.3% 45.2% 46.7% 16.7%

$2,500,000 - $5,000,000 $5,000,000 - $10,000,000

Over $10,000,000

B. Metro Population Where Agency is Located Less than 50,000

8.7%

50,000 - 250,000 250,000 - 1,000,000 More than 1,000,000

28.3% 32.6% 30.4%

REVENUE ANALYSIS

Average PL Commission Income: $1,188,452

Average

+25% Profit

+25% Growth

% of Net Total Revenues

26.4% 92.2% 12.8%

26.8% 90.6% 11.1%

22.0% 92.4% 16.5%

% Renewals (1) % New Business (2)

% Acquired (3)

2.6% 5.0% 7.6%

2.8% 1.7% 4.5%

2.3% 8.9%

Growth Rate: Internal (4)

Total (5)

11.1%

(1) Renewal Revenues as a percent of prior year's Personal Lines Total Revenues. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the percentage, the more favorable the results. (2) New Revenues as a percent of prior year's Personal Lines Total Revenues. The higher the percentage, the more favorable the results. (3) Acquired Revenues as a percent of prior year's Personal Lines total Revenues.

The percentage indicates the significance of acquired business. (4) Growth in Revenues from prior year excluding acquired revenues. (5) Growth in Revenues from prior year including acquired revenues.

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