2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 2.7%

LLC 32.4%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

13.5% 29.7%

S Corp 64.9%

◼ West

5.4%

◼ Southeast ◼ Southwest

40.5% 10.8%

Revenue Distribution (as a % of Gross Revenue)

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

33.6%

31.5%

Contingent / Bonus/ Overrides 6.5%

26.2%

23.3%

Other 0.9%

Group L/H/F 4.1%

12.2%

9.6%

7.0%

Commercial P&C 40.9%

-2.4%

Personal P&C 47.6%

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 .

Account Stratification

Notes

• Agencies in this revenue category achieved the highest overall Organic Growth Rate (9.6%), as well as the highest Organic Growth Rate in both commercial lines (12.2%) and personal lines (7.0%). • With the lowest Weighted Average Shareholder Age (50.0) of all the revenue categories, the agencies under $1.25 million in revenue have relatively young ownership, which typically indicates less near-term pressure on internal perpetuation.

Commercial P&C

Group L&H

◼ < $5K

◼ Under 50 lives

56.2%

82.5%

◼ $5K to $10K

◼ From 50 to 100 lives

16.5%

11.0%

◼ $10K to $25K

◼ Over 100 lives

15.5%

6.5%

◼ $25K to $50K

7.2%

◼ > $50K

4.6%

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