2008 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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

51.8%

46.7%

51.2%

Bonds

2.1%

2.2%

0.2%

Personal P&C

23.0%

30.0%

27.8%

Value Added Services

0.2%

0.2%

0.2%

Contingent/Bonus

10.4%

15.8%

12.9%

Total P&C

87.4%

95.0%

92.3%

Life & Health/Financial Group Commissions & Fees

9.1%

3.0%

4.5%

Individual Commissions & Fees

1.7%

1.0%

2.0%

Value Added Services

0.0%

0.0%

0.0%

Bonus/Overrides

0.4%

0.0%

0.0%

Total L&H/Financial

11.2%

4.1%

6.5%

Investments

1.2%

0.7%

0.9%

Miscellaneous

0.2%

0.3%

0.2%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

0.8%

0.0%

0.5%

Net Revenues

99.2%

100.0%

99.5%

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

Personal Lines

63.6% 66.7% 21.2% 57.6% 21.2%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

42 2008 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses