2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 54.3

$3,563,292

◼ Northeast ◼ Midwest

9.3%

27.9%

◼ West

9.3%

◼ Southeast ◼ Southwest

39.5% 14.0%

Corporate Structure

Profile

Average Number of Shareholders 2.6 Average Number of Agency Locations 2.3

C Corp 23.3%

LLC 9.3%

S Corp 67.4%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 9.3%

13.7%

13.0%

12.7%

Other 1.8%

10.5%

10.0%

9.7%

9.2%

Group L/H/F 7.1%

Commercial P&C 53.5%

Personal P&C 28.3%

-0.8%

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 .

Revenue and Growth

Account Stratification

Notes

• BPS firms with $2.5 – $5M in revenue generate 91% of their gross revenues from property & casualty commissions and contingencies. • Agencies in this revenue category posted median organic growth of 10%, outperforming the two smaller revenue categories but lagging the three larger revenue categories.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

39.4%

43.5%

◼ $5K to $10K

◼ From 50-100 lives 43.5%

14.5%

◼ $10K to $25K

◼ Over 100 lives

18.6%

13.1%

◼ $25K to $50K

13.1%

◼ > $50K

14.4%

$2.5-5M

25