2017 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Sole Prop. 3.3%

C Corp 16.7%

LLC 26.7%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

20.0% 30.0%

 West

3.3%

 Southeast  Southwest

43.3%

S Corp 53.3%

3.3%

Revenue Distribution (as a % of Gross Revenue)

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

27.3%

Contingent / Bonus/ Overrides 7.0%

20.5%

Other 0.8%

17.6%

15.3%

Group L/H/F 3.3%

Commercial P&C 32.3%

6.8%

4.4%

3.8%

3.1%

Personal P&C 56.6%

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 .

Account Stratification

Notes

• With an average WASA of 52.3, this smallest revenue category has the second-youngest ownership group behind agencies with $10- $25M in revenue. • The Group L/H/F space, which can be difficult for smaller agents to meaningfully penetrate, showed the highest growth rates at 6.8%.

Commercial P&C

Group L&H

 < $5K

 Under 50 lives

67.0%

94.9%

 $5K to $10K

 From 50 to 100 lives

12.2%

5.1%

 $10K to $25K

 Over 100 lives

11.6%

0.0%

 $25K to $50K

3.8%

 > $50K

5.4%