2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 12.8%

LLC 23.4%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

21.3% 21.3%

Partner- ship 8.5%

◼ West

8.5%

S Corp 55.3%

◼ Southeast ◼ Southwest

31.9% 17.0%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent / Bonus/ Overrides 9.5%

28.6%

Other 0.8%

16.7%

16.2%

13.8%

Group L/H/F 18.1%

9.3%

7.5%

6.6%

5.2%

Commercial P&C 52.6%

Personal P&C 19.0%

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 the $5 – 10M revenue category reported the highest Weighted Average Shareholder Age (WASA) of 54.3. These firms produced a relatively high Organic Growth Rate (9.3%) in Group L/H/F, but the lowest Organic Growth Rate (6.6%) in Commercial P&C and the second lowest rate (5.2%) in Personal P&C.

Commercial P&C

Group L/H/F

•

◼ < $5K

◼ Under 50 lives

29.3%

43.9%

◼ $5K to $10K

◼ From 50 to 100 lives

13.0%

21.7%

◼ $10K to $25K

◼ Over 100 lives

19.2%

34.3%

◼ $25K to $50K

13.6%

◼ > $50K

25.0%

 41