2008 Best Practices Study
Agencies with Revenues between $1,250,000 and $2,500,000
 
   
 

Rev. % By Source/Future Rev. Sources  | Aquisition Info  |  Rev. Growth By Source:  P&C  L&H  Total

Revenue Growth by Source TOTAL
  Average +25% Profit +25% Growth
Total Commissions & Fees
Renewals 85.1% 89.0% 84.1%
New Business 20.1% 19.6% 31.9%
Acquired Revenues 0.7% 0.0% 0.7%
Organic Growth 5.7% 10.5% 16.1%
Total Growth 6.3% 10.5% 16.8%
P&C Contingent Income Growth 6.5% 41.9% 58.6%
L&H Bonus Income Growth 6.0% * *
Investment Income Growth 16.9% 23.6% 11.8%
Total Revenue Growth 6.4% 10.5% 19.9%
Brokerage Commission Expense Growth -6.1% * *
Net Revenue Growth (Organic)** 6.2% 11.4% 20.2%
Net Revenue Growth (Total) 6.8% 11.4% 20.7%

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.



 

 
     
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