2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 66.9% 8.2% 1.9% 8.5% 2.5% 1.2% 0.4% 10.3%

+25% Growth 60.7% 10.7%

Average

Commercial P&C

62.1% 7.5% 2.8% 8.2% 1.6% 1.1% 0.7% 16.1%

PROFILE

Personal P&C

P&C Service Fees

2.0% 8.7%

Contingent Group L&H

REVENUES/ EXPENSES

13.7%

Individual L&H

2.1% 0.9% 1.2%

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

4.1%

8.7%

1.5%

EMPLOYEE OVERVIEW

Net Revenues

95.9%

91.3%

98.5%

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 50.0% Small Commercial Lines 43.8% Individual Life & Health 21.9% Group Life & Health 96.9% Surety/Bonding 62.5%

INSURANCE CARRIERS

APPENDIX

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