2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 65.6% 14.2%

+25% Growth 56.4% 20.6%

Average

Commercial P&C

56.3% 17.9%

PROFILE

Personal P&C

P&C Service Fees

1.1% 8.6%

0.8% 9.8% 7.4% 0.5% 1.3% 0.5%

0.6% 8.3%

Contingent Group L&H

REVENUES/ EXPENSES

12.6%

10.6%

Individual L&H

1.8% 0.9% 0.8%

1.4% 0.5% 1.6%

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.5%

2.6%

3.3%

EMPLOYEE OVERVIEW

Net Revenues

97.5%

97.4%

96.7%

70%

Average

60%

+25% Profit

PRODUCER INFO

50%

+25% Growth

40%

30%

SERVICE STAFF INFO

20%

% Total Revenue

10%

Commercial P&C

Personal P&C

P&C Service Fees

Contingent

Group L&H

Individual L&H

Investments

TECHNOLOGY

Future Revenue Sources % of Agencies Considering Line of Business as Very Important: Personal Lines 67.7% Small Commercial Lines 71.0% Individual Life & Health 48.4% Group Life & Health 77.4% Surety/Bonding 51.6%

INSURANCE CARRIERS

APPENDIX

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