2022 Best Practices Study

Executive Summary

Average Revenues $15,844,262

Regional Distribution

Weighted Average Shareholder Age (WASA) 55.0

 Northeast  Midwest

23.3% 11.7% 16.7% 33.3% 15.0%

 West

 Southeast  Southwest

Corporate Structure

Average Number of Shareholders 6.2 Average Number of Agency Locations 4.8

Profile

C Corp 26.7%

LLC 21.7%

Partner ship 3.3%

S Corp 48.3%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 8.9%

24.6%

Other 1.6%

21.2%

20.9%

16.8%

Group L/H/F 15.6%

11.3%

10.2%

5.9%

Commercial P&C 57.6%

2.3%

Personal P&C 16.3%

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

Notes

Account Stratification

• This category increased its organic growth from 4.0% last year to over 10% this year, supported by an increase in revenue from fast-growing commercial lines business (57.6% this year versus 52.8% last year). • $10-$25M firms delivered the 2 nd highest organic growth rate of any size category with 10.2%. This double-digit growth rate was achieved despite a personal lines growth rate of 2.3%, which was approximately 1.8% below the next lowest personal lines organic growth rate.

Commercial P&C

Group L/H/F

 < $5K

25.1% 11.3% 17.9% 15.1% 30.6%

 Under 50 lives

41.7%

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

 From 50-100 lives 20.6%

 Over 100 lives

37.7%

 > $50K

$10-25M

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