2009 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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

47.1%

47.0%

42.3%

Bonds

1.2%

0.2%

0.3%

Personal P&C

25.2%

31.2%

15.2%

Value Added Services

0.2%

0.2%

0.2%

Contingent/Bonus

8.0%

8.3%

8.0%

Total P&C

81.7%

87.1%

66.0%

Life & Health/Financial Group Commissions & Fees

12.7%

9.9%

23.7%

Individual Commissions & Fees

3.7%

1.0%

8.0%

Value Added Services

0.1%

0.0%

0.2%

Bonus/Overrides

0.4%

0.5%

1.1%

Total L&H/Financial

16.9%

11.4%

33.0%

Investments

1.1%

1.5%

1.0%

Miscellaneous

0.3%

0.0%

0.0%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.1%

0.1%

3.1%

Net Revenues

98.9%

99.9%

96.9%

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

Personal Lines

81.5% 48.1% 37.0% 70.4% 18.5%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

62 2009 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses