2008 Best Practices Study

Agencies with Revenues Over $25,000,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

56.0%

47.7%

63.7%

Bonds

3.4%

2.0%

4.6%

Personal P&C

10.9%

23.5%

6.7%

Value Added Services

1.4%

0.1%

1.5%

Contingent/Bonus

7.1%

8.6%

6.2%

Total P&C

78.8%

81.8%

82.7%

Life & Health/Financial Group Commissions & Fees

15.8%

13.4%

11.9%

Individual Commissions & Fees

0.8%

0.8%

0.9%

Value Added Services

0.5%

0.0%

0.2%

Bonus/Overrides

0.5%

0.4%

0.5%

Total L&H/Financial

17.7%

14.6%

13.6%

Investments

2.5%

2.7%

3.2%

Miscellaneous

1.0%

0.9%

0.6%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

3.8%

2.3%

4.8%

Net Revenues

96.2%

97.7%

95.2%

Future Revenue Sources % of Agencies Considering Line of Business as Very Important:

Personal Lines

56.0% 44.0%

Small Commercial Lines Individual Life & Health Group Life & Health

8.0%

92.0% 80.0%

Surety/Bonding

102

2008 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses