2008 Best Practices Study
Agencies with Revenues between $2,500,000 and $5,000,000
 
   
 

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

Revenues
(% by Source) Average +25% Profit +25% Growth
Property & Casualty
Commercial Comm. & Fees 51.8% 46.7% 51.2%
Bonds 2.1% 2.2% 0.2%
Personal P&C 23.0% 30.0% 27.8%
Value Added Services 0.2% 0.2% 0.2%
Contingent/Bonus 10.4% 15.8% 12.9%
Total P&C 87.4% 95.0% 92.3%
Life & Health / Financial
Group Commissions & Fees 9.1% 3.0% 4.5%
Individual Commissions & Fees 1.7% 1.0% 2.0%
Value Added Services 0.0% 0.0% 0.0%
Bonus/Overrides 0.4% 0.0% 0.0%
Total L&H/Financial 11.2% 4.1% 6.5%
Investments 1.2% 0.7% 0.9%
Miscellaneous 0.2% 0.3% 0.2%
Gross Revenues 100.0% 100.0% 100.0%
Less Brokerage Commission Expense 0.8% 0.0% 0.5%
Net Revenues 99.2% 100.0% 99.5%
% of Revenues Derived from:
  Average +25% Profit +25% Growth
Largest Account 4.3% 3.9% 5.7%
High 14.0%    
Low 1.0%    
10 Largest Accounts 17.2% 17.1% 13.2%
High 44.0%    
Low 3.6%    

 

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

Personal Lines 63.6%
Small Commercial Lines 66.7%
Individual Life & Health 21.2%
Group Life & Health 57.6%
Surety/Bonding 21.2%

 

 
     
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