2024 Best Practices Study

Executive Summary

Weighted Average Shareholder Age (WASA) 57.6

Average Revenues $775,280

Regional Distribution

 Northeast  Midwest

10.5% 31.6% 15.8% 42.1%

 West

 Southeast  Southwest

Corporate Structure

0.0%

Average Number of Shareholders 1.4 Average Number of Agency Locations 1.2

Profile

Sole Prop. 5.3%

C Corp 21.1%

LLC 15.8%

S Corp 57.9%

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

Revenue Distribution (as a % of Gross Revenue)

Contingent/ Bonus/ Overrides 6.3%

Other 0.8%

22.6%

16.5%

Group L/H/F 4.0%

Commercial P&C 40.3%

13.6%

12.1%

11.2%

7.6%

5.4%

2.6%

Personal P&C 48.6%

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 .

Revenue and Growth

Account Stratification

Notes

• Agencies under $1.25M in revenue posted a 5.4% organic growth rate, the lowest organic growth rate of all Best Practices revenue groups for the third year in a row. • Commercial P&C growth rate slowed to 2.6%, down from 6.4% in 2023, contributing to the lower overall organic growth rate.

Commercial P&C

Group L/H/F

 < $5K

65.7% 13.1% 10.5%

 Under 50 lives

97.3%

 $5K to $10K  $10K to $25K  $25K to $50K

 From 50-100 lives

0.6% 2.1%

 Over 100 lives

3.8% 6.8%

 > $50K

<$1.25M

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