2018 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Sole Prop. 2.7%

C Corp 16.2%

LLC 18.9%

Partner- ship 2.7%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

18.9% 18.9% 13.5% 29.7% 18.9%

S Corp 59.5%

◼ West

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

23.0%

Contingent / Bonus/ Overrides 8.3%

17.8%

Other 1.1%

14.4%

10.7%

Group L/H/F 21.5%

5.6%

5.4%

5.4%

3.5%

Commercial P&C 52.7%

Personal P&C 16.4%

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

Just like in 2017, $10 - $25 million firms reported the highest organic growth rate (5.6%) of all size categories.

•

Commercial P&C

Group L/H/F

• In 2017, Group L/H/F was the fastest-growing line of business, but this year Commercial P&C and Group L/H/F both grew at 5.4% • The WASA of 53.1 for this size category is the second lowest of all revenue categories.

◼ < $5K

◼ Under 50 lives

23.7%

37.9%

◼ $5K to $10K

◼ From 50 to 100 lives

10.5%

16.9%

◼ $10K to $25K

◼ Over 100 lives

18.0%

44.7%

◼ $25K to $50K

15.4%

◼ > $50K

32.5%

 45