2009 Best Practices Study

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

52.7%

48.0%

43.8%

Bonds

1.9%

3.1%

1.4%

Personal P&C

12.4%

19.6%

19.9%

Value Added Services

0.6%

0.8%

0.7%

Contingent/Bonus

10.1%

14.6%

12.3%

Total P&C

77.6%

86.1%

78.2%

Life & Health/Financial Group Commissions & Fees

17.0%

9.4%

15.6%

Individual Commissions & Fees

1.6%

1.8%

2.6%

Value Added Services

0.2%

0.0%

0.4%

Bonus/Overrides

1.2%

0.1%

2.1%

Total L&H/Financial

19.9%

11.3%

20.7%

Investments

1.2%

1.4%

1.0%

Miscellaneous

1.3%

1.3%

0.1%

Gross Revenues

100.0%

100.0%

100.0%

Less Brokerage Commission Expense

1.2%

2.6%

2.2%

Net Revenues

98.8%

97.4%

97.8%

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

Personal Lines

52.6% 36.8% 28.9% 94.7% 44.7%

Small Commercial Lines Individual Life & Health Group Life & Health

Surety/Bonding

82 2009 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses