2022 Best Practices Study

Executive Summary

Average Revenues $781,136

Regional Distribution

Weighted Average Shareholder Age (WASA) 54.8

 Northeast  Midwest

12.9% 19.4% 16.1% 45.2%

 West

 Southeast  Southwest

Corporate Structure

6.5%

Average Number of Shareholders 1.5 Average Number of Agency Locations 1.2

Profile

C Corp 9.7%

Sole Prop. 6.5%

LLC 12.9%

S Corp 71.0%

Revenue Distribution (as a % of Gross Revenue)

Organic Growth in Net Commissions & Fees (excluding contingents, bonuses & overrides)

Contingent/ Bonus/ Overrides 5.8%

34.4%

Other 1.3%

29.6%

19.3%

18.6%

Group L/H/F 3.3%

11.4%

Commercial P&C 44.7%

7.2%

5.2%

Personal P&C 44.8%

-2.5%

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

Median

Top Quartile

Note : Commercial P&C includes Bonds/Surety. Group L/H/F includes Group Medical, All Other Group, and Individual L/H/F .

Revenue and Growth

Account Stratification

Notes

• At only 3.3% of gross revenue, Group L/H/F

Commercial P&C

Group L/H/F

business continues to be a relatively untapped revenue source for this Best Practices revenue category.

 < $5K

61.4% 15.4% 11.4%

 Under 50 lives

88.2%

• Agencies under $1.25M in revenue posted the lowest organic growth rate of all Best Practices revenue groups in this year's Study (7.2%).

 $5K to $10K  $10K to $25K  $25K to $50K

 From 50-100 lives 11.8%

 Over 100 lives

0.0%

6.4% 5.5%

 > $50K

<$1.25M

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