2006 Best Practices Study

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

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

49.6%

59.6%

59.1%

PROFILE

Personal P&C

28.6%

26.7%

25.2%

P&C Service Fees

0.2%

0.2%

0.1%

Contingent

11.7%

10.0%

12.0%

REVENUES/ EXPENSES

Group L&H

5.3%

1.7%

2.1%

Individual L&H

2.8%

1.0%

0.8%

Investments

0.5%

0.6%

0.4%

FINANCIAL STABILITY

Miscellaneous

1.3%

0.2%

0.3%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

1.1%

1.4%

2.3%

EMPLOYEE OVERVIEW

Net Revenues

98.9%

98.6%

97.7%

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

69.2% 73.1% 26.9% 42.3% 23.1%

Small Commercial Lines Individual Life & Health

Group Life & Health Surety & Bonding

2006 Best Practices Study

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