2007 Best Practices Study

Agencies with Revenues over $25,000,000

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 TOTAL

	Average	+25% Profit	+25% Growth
Total Commissions & Fees
Renewals	92.9%	88.1%	101.3%
New Business	17.0%	17.2%	19.0%
Acquired Revenues	3.0%	2.6%	0.4%
Organic Growth	10.5%	7.1%	20.3%
Total Growth	13.5%	9.6%	20.7%

P&C Contingent Income Growth	3.0%	0.9%	17.1%
L&H Bonus Income Growth	14.1%	*	7.4%
Investment Income Growth	33.0%	51.3%	12.6%
Total Revenue Growth	13.3%	10.2%	21.9%
Brokerage Commission Expense Growth	-0.1%	-1.2%	6.0%
Net Revenue Growth (Organic)**	10.6%	8.2%	21.4%
Net Revenue Growth (Total)	13.5%	10.5%	21.8%

*Insufficient Data

**Organic growth rates for the most recently completed fiscal year varied widely by region due in part to the effect of Hurricane Katrina on coastal exposure pricing. As a result, the AVERAGE organic growth rates achieved by the Best Practices Agencies were skewed upward. As such, readers of this study might prefer to benchmark off of the MEDIAN organic growth rate, which is the mid-point of the data when the results are ranked in descending order.

MEDIAN
Organic Growth Rate:
8.9%

Definitions:

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.
New Revenues as a % of prior year's total revenues for this line of business. The higher the %, the more favorable the results.
Acquired Revenues as a % of prior year's total revenues for this line of business. The % indicates the significance of acquired business.
Organic Growth is Revenues from prior year excluding acquired revenues.
Total Growth is Revenues from prior year including acquired revenues.