2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 54.7

$15,636,043

◼ Northeast ◼ Midwest

20.8%

9.4%

◼ West

18.9% 35.8% 15.1%

◼ Southeast ◼ Southwest

Corporate Structure

Profile

Average Number of Shareholders 6.1 Average Number of Agency Locations 4.4

C Corp 20.4%

LLC 25.9%

Partner ship 3.7%

S Corp 50.0%

Revenue Distribution (as a % of Gross Revenue)

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

17.2%

Contingent/ Bonus/ Overrides 8.7%

Other 1.4%

14.4%

14.2%

10.3%

10.0%

9.0%

Group L/H/F 16.3%

6.8%

5.9%

Commercial P&C 58.4%

Personal P&C 15.2%

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

Notes

Account Stratification

• This category experienced almost the same organic growth in 2023 (10.3%) as it did previously in 2022 (10.2%). • $10-$25M firms had the lowest organic growth for Personal P&C (5.9%) compared to all other revenue categories.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

27.1%

28.2%

◼ $5K to $10K

◼ From 50-100 lives 27.9%

11.7%

◼ $10K to $25K

◼ Over 100 lives

17.9%

43.9%

◼ $25K to $50K

14.4%

◼ > $50K

28.9%

$10-25M

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