2019 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Other 7.0%

LLC 11.6%

C Corp 32.6%

Partner- ship 2.3%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

23.3% 30.2% 20.9% 23.3%

◼ West

S Corp 46.5%

◼ Southeast ◼ Southwest

2.3%

Revenue Distribution (as a % of Gross Revenue)

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

20.1%

Contingent / Bonus/ Overrides 8.4%

17.8%

15.6%

Other 1.1%

11.9%

7.5%

Group L/H/F 27.3%

7.1%

6.4%

4.9%

Commercial P&C 52.7%

Personal P&C 10.5%

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

• Agencies in the largest revenue category are the most likely to be organized as a C- corporation, with nearly one-third (32.6%) utilizing this corporate structure. • The overall Organic Growth Rate (6.4%) for BPS agencies with over $25 million in revenue was the lowest reported by all revenue categories, as was the personal lines organic growth rate of 4.9%.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

17.6%

19.7%

◼ $5K to $10K

◼ From 50 to 100 lives

8.4%

14.7%

◼ $10K to $25K

◼ Over 100 lives

15.5%

65.3%

◼ $25K to $50K

15.0%

◼ > $50K

43.5%

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