2006 Best Practices Study

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

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

44.8%

48.8%

43.5%

PROFILE

Personal P&C

36.6%

38.5%

41.8%

P&C Service Fees

0.3%

1.1%

0.0%

Contingent

8.3%

3.9%

5.8%

REVENUES/ EXPENSES

Group L&H

6.4%

4.6%

3.5%

Individual L&H

2.7%

2.5%

4.7%

Investments

0.3%

0.3%

0.3%

FINANCIAL STABILITY

Miscellaneous

0.6%

0.3%

0.5%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.1%

2.9%

0.0%

EMPLOYEE OVERVIEW

Net Revenues

97.9%

97.1% 100.0%

70%

Average

60%

PRODUCER INFO

+25% Profit

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:

INSURANCE CARRIERS

Personal Lines

90.5% 85.7%

Small Commercial Lines Individual Life & Health

0.0%

Group Life & Health Surety & Bonding

19.0% 19.0%

2006 Best Practices Study

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