2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

B.

% of Revenues Derived from Largest Accounts

+25% Profit

+25% Growth

2006

Average

Largest Commission Account

3.1% 3.6% 2.8%

High

9.2%

PROFILE

Low

1.1%

10 Largest Commission Accounts

12.0% 13.3% 11.5%

High

26.7%

REVENUES/ EXPENSES

Low

3.7%

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

FINANCIAL STABILITY

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

5.9%

$217,003

3.0%

EMPLOYEE OVERVIEW

D.

Net Revenue Growth

+25% Profit

+25% Growth

Average

PRODUCER INFO

Net Revenue Growth (Organic)

6.0% 6.6% 14.7%

Net Revenue Growth (Total)

6.2% 6.9% 14.7%

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

68