2004 Best Practices Study

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

E. Revenue Growth by Source (stated as % of Prior Year’s Total Revenues)

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth 103.2% 26.1%

Average

Commercial P&C

96.0% 17.4%

88.4% 18.2%

Renewals 1

New Business 2

Acquired Revenues 3 Organic Growth 4

0.8%

0.0% 6.6% 6.6%

3.4%

13.4% 14.2%

29.2% 32.7%

PROFILE

Total Growth 5

Personal P&C

92.4% 16.8%

86.6% 16.4%

83.7% 21.3%

Renewals 1

New Business 2

Acquired Revenues 3 Organic Growth 4

2.9% 9.2%

0.0% 3.1% 3.1%

9.8% 5.0%

REVENUES/ EXPENSES

Total Growth 5

12.1%

14.8%

P&C Service Fees

Renewals 1

60.9% 33.0% 0.0% -6.1% -6.1% 88.9% 22.8%

* * * * *

74.7%

New Business 2

6.3% 0.0%

FINANCIAL STABILITY

Acquired Revenues 3 Organic Growth 4

-19.0% -19.0%

Total Growth 5

Group L&H

Renewals 1

97.4% 18.3%

92.4% 43.1%

EMPLOYEE OVERVIEW

New Business 2

Acquired Revenues 3 Organic Growth 4

0.3%

0.0%

1.5%

11.6% 11.9%

15.7% 15.7%

35.5% 37.1%

Total Growth 5

Individual L&H

Renewals 1

54.9% 48.7%

51.9% 72.1%

42.7% 77.7%

PRODUCER INFO

New Business 2

Acquired Revenues 3 Organic Growth 4

0.2% 3.6% 3.8%

0.0%

0.7%

24.0% 24.0%

20.4% 21.1%

Total Growth 5

SERVICE STAFF INFO

Total Commissions & Fees

Renewals 1

93.7% 20.8%

89.5% 25.6%

99.3% 33.0%

New Business 2

Acquired Revenues 3 Organic Growth 4

1.3%

0.0%

4.5%

14.5% 15.8%

15.1% 15.1%

32.3% 36.8%

Total Growth 5

TECHNOLOGY

Contingent Income Growth Investment Income Growth

26.9% -18.0% 18.4% -1.1% 17.2% 18.4%

21.0% -6.7% 16.7% 21.7% 15.9% 15.9%

50.5% -13.0% 41.5%

Total Revenue Growth

Brokerage Commission Expense Growth

*

INSURANCE CARRIERS

Net Revenue Growth (Organic) Net Revenue Growth (Total)

37.1% 41.3%

1 Renewal Revenues as a % of prior year’s total revenues for this 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 %, the more favorable the results. 2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results. 3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

APPENDIX

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

*Insufficient Data

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