2012 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Revenue Growth by Source

Average

+25% Profit

+25% Growth

Commercial P&C Renewals 1

91.0% 14.7%

91.7% 12.3%

94.2% 20.5%

New Business 2

Acquired Revenues 3

0.8% 5.7% 6.5%

1.9% 4.0% 5.9%

0.0%

Organic Growth 4

14.7% 14.7%

Total Growth 5

Bonds

Renewals 1

65.5% 36.6%

87.5% 14.0%

58.0% 53.9%

New Business 2

Acquired Revenues 3

1.9% 2.1% 4.0%

0.0% 1.5% 1.5%

0.0%

Organic Growth 4

11.9% 11.9%

Total Growth 5

Personal P&C

Renewals 1

93.7% 13.5%

88.4% 17.2%

86.4% 23.1%

New Business 2

Acquired Revenues 3

1.4% 7.2% 8.6%

4.0% 5.6% 9.6%

0.0% 9.6% 9.6%

Organic Growth 4

Total Growth 5

Value Added Services Renewals 1

42.1% 42.5%

43.2% 57.3%

* * * * *

New Business 2

Acquired Revenues 3

0.0%

0.0% 0.5% 0.5%

Organic Growth 4

-15.3% -15.3%

Total Growth 5

*Insufficient Data

1 Renewal Revenues as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results.

2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

2012 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

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