2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 21.4%

LLC 21.4%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

19.0% 26.2% 14.3% 33.3%

◼ West

S Corp 57.1%

◼ Southeast ◼ Southwest

7.1%

Revenue Distribution (as a % of Gross Revenue)

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

16.3%

12.7%

Contingent / Bonus/ Overrides 9.9%

11.1%

10.1%

Other 1.0%

5.5%

3.3%

3.2%

Group L/H/F 9.1%

Commercial P&C 51.4%

-4.3%

Personal P&C 28.7%

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

• This revenue group posted negative organic growth in life and health revenues, one of three revenue categories to do so. • At 9.9%, this revenue category has the largest concentration of contingent/bonus/override income as a percent of revenue. • Agencies in this revenue category generate 51.4% of revenue from CL P&C business. This

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

40.7%

59.9%

◼ $5K to $10K

◼ From 50 to 100 lives

16.6%

18.5%

◼ $10K to $25K

◼ Over 100 lives

17.9%

21.6%

◼ $25K to $50K

11.7%

is the smallest BPS group to generate a majority of its revenue from CL P&C.

◼ > $50K

13.0%

 37