2001 Best Practices Study

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

F. Renewal Revenue as % of Prior Year's Total Revenues for Each Line of Business

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. Average +25% Profit +25% Growth

Commercial P&C

96.7% 90.5% 77.8% 91.6% 57.8% 93.8%

95.4% 91.3%

103.6% 83.9% 72.8% 98.7% 63.2% 101.1%

Personal P&C

P&C Service Fees

*

Group L&H

88.8% 53.9% 93.1%

Individual L&H

Total Commissions & Fees

*-Insufficient Data

G. New Business Revenue as % of Prior Year's Total Revenues for Each Line of Business

The higher the percentage, the more favorable the results.

Average

+25% Profit

+25% Growth

Commercial P&C

17.0% 14.5% 19.8% 26.6% 51.2% 19.7%

18.3% 12.3%

20.0% 25.3% 12.9% 25.7% 45.8% 24.4%

Personal P&C

P&C Service Fees

*

Group L&H

30.3% 50.7% 21.6%

Individual L&H

Total Commissions & Fees

*-Insufficient Data

H. Acquired Revenue as % of Prior Year's Total Revenues for Each Line of Business

The percentage indicates the significance of the acquired business.

Average

+25% Profit

+25% Growth

Commercial P&C

1.7% 1.9% 0.0% 0.1% 0.4% 1.4%

0.0% 1.7%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Personal P&C

P&C Service Fees

*

Group L&H

0.0% 0.0% 0.3%

Individual L&H

Total Commissions & Fees

*-Insufficient Data

I. Growth in Revenues from Prior Year by Source

Average

+25% Profit

+25% Growth

Commercial P&C

15.5% 6.9% -2.4% 18.3%

13.7%

23.6%

Personal P&C

5.3%

9.3%

P&C Service Fees

*

-14.3% 24.4%

Group L&H

19.0%

Individual L&H

9.5%

4.6%

9.0%

Total Commission & Fees

15.1%

14.9%

25.4%

Contingent Income Investment Income

1.7%

0.8%

7.9%

27.5% 15.0% -3.2% 13.5% 14.8%

25.4% 13.8% -14.1% 13.6% 13.8%

49.7% 27.1% -14.6% 26.6% 26.6%

Total Revenues

Brokerage Commission Expense

Net Revenues (Internal)

Net Revenues (Total including Acquistion)

*-Insufficient Data

89