2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Other 2.6%

LLC 10.3%

C Corp 33.3%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

15.4% 43.6% 20.5% 17.9%

◼ West

S Corp 53.8%

◼ Southeast ◼ Southwest

2.6%

Revenue Distribution (as a % of Gross Revenue)

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

16.4%

Contingent / Bonus/ Overrides 8.4%

13.7%

Other 0.8%

12.3%

11.5%

6.7%

Group L/H/F 29.6%

5.0%

4.2%

2.8%

Commercial P&C 54.6%

Personal P&C 6.6%

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 this > $25M revenue category posted the highest organic growth rate for Group L/H/F business in the 2018 Study (6.7%). As expected, agencies in this revenue category have a significant focus on very large accounts. On average, 45% of CL P&C business is generated from accounts with over $50,000 in revenue. 61.9% of Group L/H/F business is concentrated in accounts with over 100 lives. • Group L/H/F business for agencies in this revenue category represented 29.6% of total revenue, leading all other Best Practices groups by a wide margin. •

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

13.4%

21.4%

◼ $5K to $10K

◼ From 50 to 100 lives

8.6%

16.3%

◼ $10K to $25K

◼ Over 100 lives

17.1%

61.9%

◼ $25K to $50K

15.9%

◼ > $50K

45.0%

 49