2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 27.6%

LLC 24.1%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

10.0% 30.0% 10.0% 43.3%

S Corp 48.3%

◼ West

◼ Southeast ◼ Southwest

6.7%

Revenue Distribution (as a % of Gross Revenue)

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

29.4%

Contingent / Bonus/ Overrides 7.9%

24.9%

Other 0.6%

21.0%

21.0%

Group L/H/F 7.6%

Commercial P&C 48.9%

8.1%

7.0%

5.8%

5.4%

Personal P&C 35.0%

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

• The $1.25 - $2.5 million Best Practices group had the second lowest WASA of any size category (52.5 years). At 8.1%, total agency organic growth for the $1.25 - $2.5 million group is the highest growth achieved by any revenue category in this year’s Study . The Top Quartile growth of 24.9% was the highest of any revenue category. • •

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

45.0%

83.1%

◼ $5K to $10K

◼ From 50 to 100 lives

18.0%

12.5%

◼ $10K to $25K

◼ Over 100 lives

19.2%

4.4%

◼ $25K to $50K

10.1%

◼ > $50K

7.6%

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