2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 50.8% 24.6%

+25% Growth 58.3% 19.0%

Average

Commercial P&C

51.5% 24.7%

PROFILE

Personal P&C

P&C Service Fees

0.6% 8.9% 8.2% 3.4% 0.8% 1.9%

0.5% 8.8% 9.8% 3.9% 1.1% 0.6%

0.1% 9.2% 5.4% 5.2% 1.2% 1.6%

Contingent Group L&H

REVENUES/ EXPENSES

Individual L&H

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

3.1%

7.2%

1.7%

EMPLOYEE OVERVIEW

Net Revenues

96.9%

92.8%

98.3%

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 71.0% Small Commercial Lines 77.4% Individual Life & Health 38.7% Group Life & Health 58.1% Surety/Bonding 29.0%

INSURANCE CARRIERS

APPENDIX

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