2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 8.9%

LLC 26.7%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

26.7% 20.0%

Partner- ship 6.7%

◼ West

6.7%

S Corp 57.8%

◼ Southeast ◼ Southwest

26.7% 20.0%

Revenue Distribution (as a % of Gross Revenue)

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

19.7%

Contingent / Bonus/ Overrides 8.7%

Other 1.1%

12.1%

12.1%

11.3%

Group L/H/F 14.3%

5.2%

3.3%

3.1%

Commercial P&C 54.1%

0.4%

Personal P&C 21.9%

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 posted the lowest median organic growth rates (3.3%) in the Study . • Agencies in this revenue category generated the largest portion (45.5%) of their Group L/H/F business from small groups (under 50 lives). This is the largest group in the Study that still does so.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

31.1%

45.5%

◼ $5K to $10K

◼ From 50 to 100 lives

12.9%

21.3%

◼ $10K to $25K

◼ Over 100 lives

19.1%

33.0%

◼ $25K to $50K

13.6%

◼ > $50K

23.2%

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