2007 Best Practices Study
Agencies with Revenues between $2,500,000 and $5,000,000
REVENUES   |   EXPENSES   |   PROFITABILITY
 
   
 

Rev. % By Source  |  Services/Other Products Provided/Aquisition Info  |  Rev. Growth By Source:  P&C  L&H  Total  | Future Rev. Growth Strategies

Revenue Growth by Source Property & Casualty
  Average +25% Profit +25% Growth
Commercial P&C
Renewals 93.6% 95.2% 100.3%
New Business 16.8% 12.6% 21.4%
Acquired Revenues 0.1% 0.5% 0.0%
Organic Growth 10.4% 7.8% 21.7%
Total Growth 10.5% 8.3% 21.7%
Bonds
Renewals 63.8% 63.6% 77.3%
New Business 49.6% 31.2% 39.0%
Acquired Revenues 0.0% 0.0% 0.0%
Organic Growth 13.4% -5.2% 16.4%
Total Growth 13.4% -5.2% 16.4%


  Average +25% Profit +25% Growth
Personal P&C
Renewals 92.9% 94.5% 93.4%
New Business 13.9% 16.6% 28.4%
Acquired Revenues 0.7% 2.6% 0.0%
Organic Growth 6.7% 11.1% 21.8%
Total Growth 7.4% 13.7% 21.8%
Value Added Services - P&C
Renewals 99.6% * *
New Business 4.2% * *
Acquired Revenues 0.0% * *
Organic Growth 3.8% * *
Total Growth 3.8% * *

*Insufficient Data

Definitions:

  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. Organic Growth is Revenues from prior year excluding acquired revenues.

  5. Total Growth is Revenues from prior year including acquired revenues.

 

  
     
  ©2007 by the Independent Insurance Agents & Brokers of America and Reagan Consulting. All Rights Reserved.