2022 Best Practices Study

Executive Summary

Average Revenues $7,198,846

Regional Distribution

Weighted Average Shareholder Age (WASA) 51.0

 Northeast  Midwest

18.2% 16.4% 14.5% 32.7% 18.2%

 West

 Southeast  Southwest

Corporate Structure

Average Number of Shareholders 3.6 Average Number of Agency Locations 2.4

Profile

C Corp 16.4%

LLC 23.6%

Partner ship 5.5%

S Corp 54.5%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 8.5%

24.9%

24.9%

24.4%

Other 2.0%

15.9%

13.4%

10.5%

9.5%

Group L/H/F 11.0%

Commercial P&C 56.7%

4.1%

Personal P&C 21.7%

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

• Commercial P&C accounted for a similar proportion of gross revenues (56.7%) for $5– 10M revenue firms as for firms with $10– 25M (57.6%) and Over $25M (58.1%) in revenue. • Agencies with $5–10M in revenues posted the strongest median organic growth rate (10.5%) of any size category.

Commercial P&C

Group L/H/F

 < $5K

34.3% 13.6% 18.0% 13.4% 20.8%

 Under 50 lives

52.6%

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

 From 50-100 lives 18.4%

 Over 100 lives

28.9%

 > $50K

$5-10M

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