2021 Best Practices Study

Executive Summary

Agencies between $1.25 Million and $2.5 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $1,815,885

C Corp 8.7%

Other 4.3%

LLC 30.4%

Weighted Average Shareholder Age (WASA) 52.5

S Corp 56.5%

◼ Northeast ◼ Midwest

17.4% 30.4%

◼ West

8.7%

◼ Southeast ◼ Southwest

34.8%

8.7%

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

25.7%

Contingent / Bonus/ Overrides 9.3%

Other 1.3%

17.2%

17.1%

Group L/H/F 4.7%

13.0%

7.1%

3.7%

Commercial P&C 48.5%

2.5%

-4.7%

Personal P&C 36.2%

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

• Smaller agencies continue to struggle with Group L/H/F growth. Organic growth totaled negative 4.7% for agencies in this revenue category. • The vast majority of Group L/H/F business resides in the Under 50 Lives category (83.6%). • At 7.1%, agencies in this category posted the

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

43.7%

83.6%

◼ $5K to $10K

◼ From 50 to 100 lives

17.2%

8.2%

◼ $10K to $25K

◼ Over 100 lives

15.0%

8.2%

second highest organic growth rates for Commercial P&C in this year’s Study .

◼ $25K to $50K

11.0%

◼ > $50K

13.1%

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