2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 18.8%

LLC 20.8%

Partner- ship 2.1%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

16.7% 20.8%

◼ West

8.3%

S Corp 58.3%

◼ Southeast ◼ Southwest

35.4% 18.8%

Revenue Distribution (as a % of Gross Revenue)

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

35.1%

Contingent / Bonus/ Overrides 9.7%

Other 0.8%

20.6%

19.2%

Group L/H/F 7.5%

17.9%

9.2%

7.9%

6.5%

6.5%

Personal P&C 23.4%

Commercial P&C 58.6%

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

• This revenue group posted organic growth of 7.9%, an increase of 4.3% over 2018, moving from the second slowest growing group to the second fastest growing group. • Group L/H/F revenue was a big contributor to organic growth performance for this group, growing at 9.2% – second highest among all BPS groups. • Agencies in this revenue category generate 50.6% of revenue from Commercial P&C business. This is the highest concentration in the Study .

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

36.3%

65.7%

◼ $5K to $10K

◼ From 50 to 100 lives

16.3%

19.4%

◼ $10K to $25K

◼ Over 100 lives

18.3%

14.9%

◼ $25K to $50K

12.7%

◼ > $50K

16.4%

 37