2021 Best Practices Study

Executive Summary

Agencies between $10.0 Million and $25.0 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $15,857,832

C Corp 26.2%

LLC 23.8%

Weighted Average Shareholder Age (WASA) 54.2

Partner- ship 4.8%

◼ Northeast ◼ Midwest

16.7% 11.9% 33.3% 23.8% 14.3%

S Corp 45.2%

◼ West

◼ Southeast ◼ Southwest

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

19.9%

Contingent / Bonus/ Overrides 9.2%

17.6%

Other 1.4%

10.5%

9.3%

Group L/H/F 20.5%

4.0%

3.7%

3.5%

2.7%

Commercial P&C 52.8%

Personal P&C 16.1%

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

•

Revenue growth results for all three lines of business (CL, PL and L/H/F) were all comparable at 3.7%, 2.7% and 3.5%, respectively. • This revenue category is the first in this year’s Study in which the largest concentration of Group L/H/F business is in the Over 100 Lives account size bucket (40.6).

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

24.2%

35.9%

◼ $5K to $10K

◼ From 50 to 100 lives

12.1%

23.0%

◼ $10K to $25K

◼ Over 100 lives

18.9%

40.6%

◼ $25K to $50K

15.0%

◼ > $50K

29.7%

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