2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 58.1% 22.6%

+25% Growth 48.8% 28.0%

Average

Commercial P&C

50.9% 23.9%

PROFILE

Personal P&C

P&C Service Fees

2.2% 8.2%

6.1% 6.8% 4.4% 0.8% 0.3% 0.9%

5.6% 9.9% 4.2% 0.9% 0.2% 2.4%

Contingent Group L&H

REVENUES/ EXPENSES

10.7%

Individual L&H

2.3% 0.5% 1.3%

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

4.0%

0.9%

4.6%

EMPLOYEE OVERVIEW

Net Revenues

96.0%

99.1%

95.4%

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 78.1% Small Commercial Lines 62.5% Individual Life & Health 40.6% Group Life & Health 65.6% Surety/Bonding 40.6%

INSURANCE CARRIERS

APPENDIX

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