2016 Best Practices Study Preview

Regional Distribution

Corporate Structure

Average Revenues

LLC 15.2%

C Corp 19.6%

Partnership 2.2%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

21.3% 19.1% 10.6% 31.9%

 West

S Corp 63.0%

 Southeast  Southwest

8.5%

Revenue Distribution (as % of Gross Revenues)

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

23.9%

Contingent / Bonus / Overrides 7.8%

Other 1.1%

18.0%

16.9%

14.1%

Group L/H/F 21.4%

7.2%

7.1%

6.0%

4.3%

Commercial P&C 56.3%

Personal P&C 13.4%

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

 With a 7.1% median total agency growth result, this $10 - $25M revenue group posted the highest organic growth results among all BPS revenue groups.  This revenue category boasted the youngest shareholder profile in the study, with a WASA of only 52.0.  Accounts with over $50K in commission & fee income made up a third of the commercial P&C books for agencies in this revenue category.

Group L&H

Commercial P&C

 < $5K

 Under 50 lives

21.2%

37.2%

 $5K to $10K

 From 50 to 100 lives

10.9%

20.7%

 $10K to $25K

 Over 100 lives

18.8%

42.1%

 $25K to $50K

15.8%

 > $50K

33.3%