2017 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Other 2.6%

LLC 12.8%

C Corp 25.6%

Partner- ship 2.6%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

12.8% 41.0% 20.5% 20.5%

 West

S Corp 56.4%

 Southeast  Southwest

5.1%

Revenue Distribution (as a % of Gross Revenue)

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

16.9%

15.0%

Contingent / Bonus/ Overrides 8.5%

13.1%

Other 1.1%

12.2%

6.3%

Group L/H/F 27.2%

5.1%

5.0%

2.9%

Commercial P&C 56.2%

Personal P&C 6.9%

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

• Median organic growth in this revenue group was 5.0%, down slightly from the 6.3% growth rate for this group in last year’s Study . • Group L/H/F was the fastest-growing segment of the business for firms in this group, posting a 6.3% organic growth rate. • Revenue from small accounts (under 50 lives) continues to decline for agencies in this revenue category, comprising 22.6% of all L&H revenue this year versus 23.7% last year.

Commercial P&C

Group L&H

 < $5K

 Under 50 lives

13.5%

22.6%

 $5K to $10K

 From 50 to 100 lives

8.6%

17.1%

 $10K to $25K

 Over 100 lives

16.7%

60.0%

 $25K to $50K

15.9%

 > $50K

45.2%