2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 16.1%

LLC 16.1%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

16.1% 25.8% 12.9% 32.3% 12.9%

◼ West

S Corp 67.7%

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

23.7%

21.3%

20.7%

Contingent / Bonus/ Overrides 9.8%

18.3%

Other 0.9%

Group L/H/F 9.0%

5.8%

Commercial P&C 44.2%

3.6%

1.8%

-1.1%

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

The $1.25 – $2.5M Best Practices group posted the second lowest overall organic growth rate ($3.6%) of all Best Practices revenue categories.

•

Commercial P&C

Group L/H/F

• In terms of Commercial P&C growth (incl. Bonds and Surety), agencies with $1.25 – $2.5M posted the highest organic growth rates of all Best Practices revenue groups (5.8%). PL P&C growth for this $1.25 - $2.5M group was the lowest among all Study groups (1.8%).

◼ < $5K

◼ Under 50 lives

46.9%

63.1%

◼ $5K to $10K

◼ From 50 to 100 lives

17.2%

24.7%

◼ $10K to $25K

◼ Over 100 lives

19.6%

12.2%

◼ $25K to $50K

10.0%

◼ > $50K

6.3%

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