2017 Best Practices Study

AGENCIES WITH REVENUES OF:

MEDIAN

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Revenue Growth by Source: TOTAL COMMISSIONS & FEES Renewal Business

93.2% 12.0%

89.4% 13.0% 0.0% 3.7% 3.3% -2.7%

94.1% 10.2% 0.0% 4.9% 4.9% -8.1%

89.6% 12.2%

90.2% 12.4% 0.0% 6.7% 5.5% -6.5% 6.7% 5.6% 7.1% 8.3% 0.2% -8.0% 0.0% 6.8% 6.6%

92.9% 12.6% 0.0% 7.6% 6.4% 7.3% 7.2% 5.0% 6.3% 13.7% 6.0% 4.1% -4.2% 8.6% 6.6%

New Business

Acquired Business

0.0% 4.4% 4.4%

0.0% 3.4% 3.1%

Total Growth

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

16.0%

4.4% 4.4% 4.2%

3.7% 2.8% 6.5%

4.9% 4.9% 4.9%

3.4% 3.1% 6.1% 4.4% 1.9% -6.2% 0.0% 5.2% 4.9%

Organic Growth

2016 BPS Organic Growth

P&C Contingent Income L/H/F Bonus Income

-18.7%

-1.7%

2.9% 1.2%

*

*

Investment Income

2.2% 0.0% 2.4% 2.4%

-9.3% 0.0% 5.0% 4.8%

10.7%

Miscellaneous Income

0.0%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

5.5% 5.5%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Renewal Business

101.3%

96.3% 24.2%

102.0%

98.5% 20.9%

99.6% 23.2%

99.3% 19.9%

New Business

22.5%

17.6%

Acquired Business

0.7%

2.2% 9.1% 8.1%

1.5%

3.7%

3.3%

6.3%

Total Growth

17.6% 17.6%

14.7% 14.0%

13.6% 11.6%

15.0% 13.1% 35.9% 15.1% 13.1% 18.0% 31.7% 23.0% 24.1%

15.7% 12.9% 49.5% 15.1% 12.2% 15.5% 37.4% 30.0% 26.5%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

*

*

*

17.6% 17.6% 13.1%

9.0% 8.1%

15.4% 14.8% 15.9%

13.6% 11.6% 19.5% 32.3% 35.3% 33.4%

Organic Growth

2016 BPS Organic Growth

12.7%

P&C Contingent Income L/H/F Bonus Income

39.7%

28.8%

26.9%

* * *

*

*

Investment Income

16.5%

37.5%

Miscellaneous Income

*

*

*

*

*

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

16.7% 16.7%

16.6% 15.6%

19.5% 19.0%

14.7% 13.0%

18.0% 16.2%

14.5% 11.7%

*Insufficient Data

Note: The Median is the mid-point in a list of data – it is different than the Mean or Average. Median data cannot be added / subtracted to arrive at related Medians. Each data point presented above (Renewal Business %, New Business %, Total Growth %, Organic Growth %, etc.) must be viewed as a discrete Median data point.