2004 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 58.5% 6.3% 1.3% 8.5% 0.9% 1.8% 0.2% 22.6%

+25% Growth 61.8% 8.9% 5.4% 5.8% 0.6% 0.5% 0.8% 16.2%

Average

Commercial P&C

60.6% 8.1% 3.3% 8.2% 0.8% 1.3% 0.8% 17.0%

PROFILE

Personal P&C

P&C Service Fees

Contingent Group L&H

REVENUES/ EXPENSES

Individual L&H

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

5.6%

8.4%

5.9%

EMPLOYEE OVERVIEW

Net Revenues

94.4%

91.6%

94.1%

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 40.0% Small Commercial Lines 46.7% Individual Life & Health 13.4% Group Life & Health 100.0% Surety/Bonding 66.7%

INSURANCE CARRIERS

APPENDIX

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