2001 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Revenue by Source

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0% % Total Revenue 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

16.2% 7.5% 22.2% 10.0% 5.9% 5.2% 5.0% 9.3% 5.8% 0.2% 10.7% 16.1%

16.5%

21.2% 11.4% 27.6% 15.2% 11.1% 10.5% 11.3% 17.6% 16.9% 15.9%

Workers Compensation Commercial Liability Commercial Package

4.7%

20.8%

7.3% 4.6% 4.8% 3.5% 5.1% 4.5% 1.0% 0.4%

Commercial Auto

Commercial Property Surety/Contract Bonds

Commercial Umbrella/Excess

Personal Auto Homeowners

Personal Package

0.4%

Third Party Administration

29.1%

Other

16.6%

C. Other Products/Services Provided

% Providing +25% Profit

Average 23.3% 46.7% 50.0% 100.0% 63.3% 13.3% 30.0% 30.0%

+25% Growth

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

12.5% 25.0% 50.0% 100.0% 50.0% 0.0% 25.0% 12.5%

25.0% 50.0% 37.5% 100.0% 62.5% 37.5% 25.0% 37.5%

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

4.3%

6.6%

4.1%

High Low

11.5%

1.0%

10 Largest Commission Accounts

16.0% 37.2%

23.2%

19.0%

High Low

4.8%

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