2009 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 49.4% 50.8% 47.0%
Bonds 2.5% 1.9% 1.6%
Personal P&C 23.4% 27.5% 22.8%
Value Added Services 1.3% 0.2% 0.0%
Contingent/Bonus 10.9% 13.6% 15.6%
Total P&C 87.4% 93.9% 87.1%
Life & Health / Financial
Group Commissions & Fees 8.8% 2.7% 7.9%
Individual Commissions & Fees 2.2% 2.4% 3.6%
Value Added Services 0.0% 0.0% 0.0%
Bonus/Overrides 0.6% 0.0% 0.6%
Total L&H/Financial 11.7% 5.1% 12.1%
Investments 0.6% 0.7% 0.5%
Miscellaneous 0.3% 0.3% 0.4%
Gross Revenues 100.0% 100.0% 100.0%
Less Brokerage Commission Expense 1.1% 0.3% 0.5%
Net Revenues 98.9% 99.7% 99.5%
% of Revenues Derived from:
  Average +25% Profit +25% Growth
Largest Account 3.5% 4.2% 3.2%
High 9.0%    
Low 1.1%    
10 Largest Accounts 14.8% 15.2% 14.7%
High 47.2%    
Low 1.9%    

 

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

Personal Lines 69.7%
Small Commercial Lines 60.6%
Individual Life & Health 21.2%
Group Life & Health 51.5%
Surety/Bonding 33.3%

 

 
     
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