3. PROFITAnaIysis It is veryr evident since revenue is decreasing and expense is increasing, bottom line is in trouble. There is one more fact that need to be looked. The case suggests, Manzana insurance employees perceive that new policies are more profitable, however if we calculate the revenue after subtracting commission, net revenue of renewal polity is high compared to new policies (refer data below) Average revenue (5 Commission to Net revenue Type of Policies 'DDO) agents ($ '000) . (S *000) New policies i 6724 1681 5043 Endorsements . 645 -_m- Renewals I 6205 434.35 5770.65