2018 Best Practices Study

AGENCIES WITH REVENUES OF:

MEDIAN

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Revenue Growth by Source: TOTAL COMMISSIONS & FEES Renewal Business

90.8% 13.4%

90.6% 12.5% 0.0% 4.6% 3.5% -0.9% 4.6% 3.6% 2.8% 8.6% -7.6% 3.3% 0.0% 5.8% 4.8%

92.7% 10.3% 0.0% 4.9% 4.9% 4.8% 5.3% 5.5% 4.9%

90.5% 11.5% 0.0% 3.6% 3.3% 5.0% 3.6% 3.3% 3.1%

90.8% 14.1% 0.0% 6.5% 5.4% 8.4% 6.6% 5.6% 5.6% -4.0% -2.6% -4.4% -4.9% 5.5% 4.1%

92.3% 12.9% 0.0% 6.3% 4.8% -6.4% 6.5% 5.0% 5.0% 1.9% 7.8% -4.3% -23.2%

New Business

Acquired Business

0.0% 4.6% 4.6%

Total Growth

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

4.6% 4.6% 4.4%

Organic Growth

2017 BPS Organic Growth

P&C Contingent Income L/H/F Bonus Income

-3.7% 37.5% 12.0%

-1.8%

-5.6%

-11.7%

-10.9%

Investment Income

-9.0% -4.5% 4.9% 5.6%

2.6% -9.7% 3.5% 3.5%

Miscellaneous Income

0.0%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

3.7% 2.7%

6.8% 4.5%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Renewal Business

96.3% 22.4%

100.4%

98.8% 18.8%

99.9% 17.5%

96.9% 21.3%

97.5% 23.4%

New Business

32.2%

Acquired Business

5.6%

1.8%

0.6%

1.8%

7.9%

5.2%

Total Growth

17.3% 12.2%

18.8% 18.3% 18.9%

10.3% 10.1% 14.0% 10.2% 10.1% 14.8%

12.5% 12.2% 30.9% 12.6% 12.1% 11.6% 26.6% 32.5% 34.7% 19.1% 13.1% 12.8%

15.9% 10.6% 62.4% 15.9% 10.7% 13.1% 25.6% 34.8% 27.7% 127.3% 17.1% 12.3%

14.5% 12.3% 42.4% 14.6% 12.3% 12.2% 24.8% 38.4% 35.0% 141.0% 14.4% 12.8%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

17.3% 12.3% 17.6% 12.6% 37.5% 36.3% 40.7% 17.2% 13.6%

18.8% 18.3%

Organic Growth

2017 BPS Organic Growth

8.1%

P&C Contingent Income L/H/F Bonus Income

32.4% -7.6% 31.3% 22.7% 20.0% 19.6%

33.9%

6.5%

Investment Income

25.3% 65.8% 12.2% 12.1%

Miscellaneous Income

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

*Insufficient Data

Note: The Median is the mid-point in a list of data – it is different than the Mean or Average. Median data cannot be added / subtracted to arrive at related Medians. Each data point presented above (Renewal Business %, New Business %, Total Growth %, Organic Growth %, etc.) must be viewed as a discrete Median data point.

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