2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

LLC 18.2%

C Corp 29.5%

Partner- ship 4.5%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

15.9% 15.9% 15.9% 31.8% 20.5%

◼ West

S Corp 47.7%

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

18.8%

16.0%

15.1%

Contingent / Bonus/ Overrides 8.3%

13.9%

Other 1.2%

7.6%

7.1%

7.0%

Group L/H/F 21.8%

5.4%

Commercial P&C 54.3%

Personal P&C 14.5%

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

•

Organic Growth rates were relatively consistent across lines of business, with Group L/H/F first at 7.6% and Personal P&C last at 5.4% • Total organic growth of 7.1% was the second lowest among all size categories. The $10.0 - $25.0M firms were the fastest growing group in last year’s Study. • The WASA of 54.1 for this size category is the third highest of all revenue categories, an increase of a full year over last year’s WASA.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

22.6%

33.1%

◼ $5K to $10K

◼ From 50 to 100 lives

10.8%

20.5%

◼ $10K to $25K

◼ Over 100 lives

18.4%

45.6%

◼ $25K to $50K

16.4%

◼ > $50K

31.8%

 45