2006 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

60.4%

58.4%

66.0%

PROFILE

Personal P&C

7.0%

6.8%

2.5%

P&C Service Fees

2.4%

1.9%

2.2%

Contingent

8.8%

8.7%

8.2%

REVENUES/ EXPENSES

Group L&H

16.9%

20.6%

16.5%

Individual L&H

0.9%

1.0%

0.7%

Investments

2.4%

2.2%

2.1%

FINANCIAL STABILITY

Miscellaneous

1.2%

0.6%

1.8%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

4.0%

5.8%

4.5%

EMPLOYEE OVERVIEW

Net Revenues

96.0%

94.2%

95.5%

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

23.5% 29.4%

Small Commercial Lines Individual Life & Health

0.0%

Group Life & Health Surety & Bonding

82.4% 41.2%

2006 Best Practices Study

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