2008 Best Practices Study
Agencies with Revenues between $2,500,000 and $5,000,000
REVENUES   |   EXPENSES   |   PROFITABILITY
 
   
 

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

Revenue Growth by Source Property & Casualty
  Average +25% Profit +25% Growth
Commercial P&C
Renewals 87.3% 82.7% 96.3%
New Business 15.0% 24.2% 17.1%
Acquired Revenues 0.7% 0.7% 2.3%
Organic Growth 2.3% 6.9% 13.4%
Total Growth 3.0% 7.6% 15.7%
Bonds
Renewals 55.5% 55.7% 60.1%
New Business 41.4% 38.0% 33.1%
Acquired Revenues 0.1% 0.0% 0.4%
Organic Growth -3.1% -6.3% -6.8%
Total Growth -3.0% -6.3% -6.4%


  Average +25% Profit +25% Growth
Personal P&C
Renewals 83.9% 70.5% 83.7%
New Business 11.5% 16.2% 12.6%
Acquired Revenues 1.1% 0.1% 3.9%
Organic Growth -4.7% -13.4% -3.7%
Total Growth -3.6% -13.3% 0.2%
Value Added Services - P&C
Renewals 66.9% * *
New Business 24.5% * *
Acquired Revenues 0.0% * *
Organic Growth -8.6% * *
Total Growth -8.6% * *

*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.

 

  
     
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