2017 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 16.7%

LLC 11.9%

Partner- ship 2.4%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

21.4% 19.0% 11.9% 33.3% 14.3%

 West

S Corp 69.0%

 Southeast  Southwest

Revenue Distribution (as a % of Gross Revenue)

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

22.4%

Contingent / Bonus/ Overrides 9.1%

16.7%

Other 1.1%

13.5%

13.1%

Group L/H/F 20.7%

6.5%

5.6%

5.0%

3.5%

Commercial P&C 55.0%

Personal P&C 14.1%

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

• At 51.8, this revenue group of BPS agencies had the youngest WASA results in the Study . • This group posted the highest organic growth results (5.6%) achieved in this year’s Study. Group L/H/F growth for this group almost doubled that for commercial lines. For this larger group of agents, small Group L/H/F (under 50 lives) still represents the largest segment of the overall L/H/F book. • •

Commercial P&C

Group L&H

 < $5K

 Under 50 lives

21.3%

40.6%

 $5K to $10K

 From 50 to 100 lives

11.0%

19.6%

 $10K to $25K

 Over 100 lives

18.8%

39.2%

 $25K to $50K

15.7%

 > $50K

33.2%