2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Sole Prop. 3.4%

C Corp 24.1%

LLC 27.6%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

13.8% 27.6%

◼ West

6.9%

S Corp 44.8%

◼ Southeast ◼ Southwest

48.3%

3.4%

Revenue Distribution (as a % of Gross Revenue)

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

26.6%

24.0%

Contingent / Bonus/ Overrides 7.2%

12.6%

12.3%

Other 0.8%

Group L/H/F 3.3%

4.6%

4.1%

3.4%

Commercial P&C 38.6%

-12.4%

Personal P&C 50.2%

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

• Agencies under $1.25 million have the largest concentration of personal lines business (50.2% of revenue) among all size categories as well as the highest organic growth rate in personal lines (4.1%). This smallest revenue category has the second highest concentration of C corporations (24.1% of firms), trailing only the largest revenue category at 33.3%. •

Commercial P&C

Group L&H

◼ < $5K

◼ Under 50 lives

59.4%

93.2%

◼ $5K to $10K

◼ From 50 to 100 lives

16.4%

6.8%

◼ $10K to $25K

◼ Over 100 lives

12.7%

0.0%

◼ $25K to $50K

5.6%

◼ > $50K

5.9%

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