2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Other 2.6%

C Corp 13.2%

LLC 26.3%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

15.4% 25.6% 12.8% 35.9% 10.3%

◼ West

S Corp 57.9%

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

31.3%

30.1%

Contingent / Bonus/ Overrides 8.4%

22.7%

Other 0.6%

20.7%

Group L/H/F 8.0%

Commercial P&C 48.2%

9.6%

7.9%

6.4%

0.2%

Personal P&C 34.8%

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

• The $1.25 – $2.5M Best Practices group has the second lowest WASA of any size category at 52.0 years. • Total agency organic growth for the $1.25 – $2.5M group was 7.9%, more than double last year’s 3.6% organic growth. • The Top Quartile growth of 30.1% was the highest of any size category.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

44.5%

72.5%

◼ $5K to $10K

◼ From 50 to 100 lives

15.1%

13.1%

◼ $10K to $25K

◼ Over 100 lives

20.1%

14.4%

◼ $25K to $50K

9.2%

◼ > $50K

11.2%

 33