2017 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

LLC 17.0%

C Corp 19.1%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

23.4% 25.5% 12.8% 29.8%

 West

S Corp 63.8%

 Southeast  Southwest

8.5%

Revenue Distribution (as a % of Gross Revenue)

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

20.3%

19.9%

Contingent / Bonus/ Overrides 9.5%

Other 1.2%

14.8%

12.8%

Group L/H/F 9.4%

6.4%

4.9%

Commercial P&C 51.2%

2.8%

2.3%

Personal P&C 28.7%

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 54.3, this revenue group had the second-oldest ownership group in the Study . • Commercial P&C growth more than doubled that of Group L/H/F. Personals lines growth also exceeded that for Group L/H/F.

Commercial P&C

Group L&H

 < $5K

 Under 50 lives

39.9%

58.8%

 $5K to $10K

 From 50 to 100 lives

15.6%

13.9%

 $10K to $25K

 Over 100 lives

17.4%

27.3%

 $25K to $50K

11.4%

 > $50K

15.7%