2008 Best Practices Study
Agencies with Revenues between $5,000,000 and $10,000,000
 
   
 

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 49.7% 42.7% 40.6%
Bonds 1.2% 0.2% 0.2%
Personal P&C 22.1% 31.1% 31.1%
Value Added Services 1.6% 5.9% 0.0%
Contingent/Bonus 8.3% 8.7% 8.1%
Total P&C 82.8% 88.5% 79.9%
Life & Health / Financial
Group Commissions & Fees 11.5% 8.7% 9.7%
Individual Commissions & Fees 3.2% 0.9% 7.6%
Value Added Services 0.1% 0.0% 0.3%
Bonus/Overrides 0.2% 0.2% 0.2%
Total L&H/Financial 15.0% 9.9% 17.9%
Investments 1.7% 1.5% 1.8%
Miscellaneous 0.5% 0.1% 0.4%
Gross Revenues 100.0% 100.0% 100.0%
Less Brokerage Commission Expense 1.4% 0.0% 0.5%
Net Revenues 98.6% 100.0% 99.5%
% of Revenues Derived from:
  Average +25% Profit +25% Growth
Largest Account 3.3% 3.2% 3.7%
High 7.8%    
Low 1.1%    
10 Largest Accounts 11.6% 9.8% 12.1%
High 24.7%    
Low 2.2%    

 

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

Personal Lines 74.1%
Small Commercial Lines 40.7%
Individual Life & Health 25.9%
Group Life & Health 66.7%
Surety/Bonding 25.9%

 

 
     
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