2019 Best Practices Study

AGENCIES WITH REVENUES OF:

MEDIAN

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Revenue Growth by Source: TOTAL COMMISSIONS & FEES Renewal Business

94.1% 17.5% 0.0% 9.8% 9.6% -7.5%

92.3% 15.1% 0.0% 8.6% 7.9% 7.6% 8.9% 7.9% 3.6% -1.8% 27.3% 13.1%

94.2% 12.6%

94.4% 13.6% 0.0% 8.1% 7.9% 1.6% 8.0% 7.5% 3.3% 0.7% -7.2% 4.4% 0.0% 7.3% 6.6%

92.7% 14.0% 0.0% 7.5% 6.8% 4.6% 7.6% 7.1% 5.6% -3.4% 5.0% 5.6% 0.0% 7.7% 6.8%

92.5% 14.5%

New Business

Acquired Business

0.0% 8.0% 7.6%

0.0% 7.3% 6.6%

Total Growth

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

22.4%

10.8%

9.8% 9.6% 4.6%

8.5% 7.9% 5.5% -0.5% 5.3% -2.2% 0.0% 7.7% 7.7%

6.7% 6.4% 5.0%

Organic Growth

2018 BPS Organic Growth

P&C Contingent Income L/H/F Bonus Income

-21.2%

6.3% 8.4%

*

Investment Income

1.8% 0.0%

16.7% -9.3% 7.1% 7.2%

Miscellaneous Income

0.0%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

13.1% 11.5%

9.6% 7.4%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Renewal Business

102.6%

101.3%

103.8%

106.4%

99.8% 22.6%

122.2%

New Business

33.1%

33.2%

20.7%

18.0%

23.7%

Acquired Business

3.1%

2.6%

4.2%

3.1%

5.7%

7.7%

Total Growth

27.2% 25.9%

28.4% 29.2% 18.6% 28.9% 30.1% 18.3% 30.5% 27.3% 34.3% 93.9% 29.0% 30.7%

20.7% 19.2% 43.5% 20.7% 19.2% 10.1% 24.9% 38.4% 19.3% 80.2% 21.3% 20.2%

18.5% 16.1% 42.3% 18.6% 16.2% 12.1% 33.2% 29.3% 33.7% 111.3% 21.3% 19.4%

17.4% 14.8% 33.4% 17.5% 15.1% 10.7% 32.3% 38.6% 25.3% 196.4% 17.1% 15.3%

14.0% 13.6% 29.7% 13.6% 11.9% 12.3% 34.5% 32.7% 38.9% 81.2% 15.3% 13.8%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

7.9%

27.4% 26.2% 12.3%

Organic Growth

2018 BPS Organic Growth

P&C Contingent Income L/H/F Bonus Income

35.9%

*

Investment Income

12.3% 47.3% 29.0% 27.8%

Miscellaneous Income

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

*Insufficient Data

Note: The Median is the mid-point in a list of data – it is different than the Mean or Average. Median data cannot be added / subtracted to arrive at related Medians. Each data point presented above (Renewal Business %, New Business %, Total Growth %, Organic Growth %, etc.) must be viewed as a discrete Median data point.

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