As pricing, terms and conditions improve, the broker can demonstrate it is helping clients with their insurance needs. In turn, he said, this opens up opportunities with commercial customers to assist them with other segments of their insurance and benefits needs.

"If you look back historically, U.S.I.'s historic organic revenue growth was during the soft market of the late 90s," said Mr. Eslick. "That is definitely where we are heading from a property-casualty standpoint. Our ability and differentiation is really driven in that marketplace."

He emphasized that the firm should not be judged on the performance of one quarter, but needs to be judged on a longer view.

"We are focused on building long-term shareholder value," he added. "That is where we will put our time, energy and focus."

In the second quarter, U.S.I. reported net income dropped more than $1.8 million, going from $7.55 million, or 17 cents a share in 2003, to $5.8 million, or 12 cents a share. Revenues increased 16 percent, or more than $14 million, going from $86.3 million to $100.4 million, based primarily on $14.7 million in acquisition.

For the first six months, net income dropped 13 percent, or slightly more than $1.6 million, going from $12.5 million, or 28 cents a share, to $10.9 million, or 22 cents a share.

Revenues increased 14 percent, or less than $24.4 million, going from $168.8 million to $193.2 million.

Declines were based on a $600,000 drop in organic growth in the quarter and increased expenses related to increased regulatory reporting, executives said.

The organic growth decrease, executives said, was largely due to a timing issue on the payment of contingency fees which it received in the first quarter.

During an analyst's conference call to discuss the second-quarter results, questioners wondered if the firm would be re-stating its guidance or backtracking on organic growth predictions.

Mr. Eslick said that improvements in the second half of the year would translate into an organic growth between 5 and 10 percent, though he admitted that if the second half comes in on the low range, it could bring the year total below 5 percent. He said the company was sticking to its per share earnings guidance of between $1.10 to $1.15 per share for the year.