2006 Best Practices Study

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

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2006

Average

Largest Commission Account

4.3% 3.8% 3.8%

High

16.7%

PROFILE

Low

1.2%

10 Largest Commission Accounts

16.0% 19.1% 21.6%

High

49.2%

REVENUES/ EXPENSES

Low

3.8%

C. Revenues Derived from Acquisitions Made in the Last 12 Months

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

7.7%

$356,155

17.4%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

10.4% 15.3% 20.7%

Net Revenue Growth (Total)

12.4% 15.3% 20.7%

SERVICE STAFF INFO

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

Average

+25% Profit

30%

+25% Growth

TECHNOLOGY

20%

10%

0%

INSURANCE CARRIERS

% Total Revenue -10%

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

2006 Best Practices Study

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