2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 18.4%

LLC 21.1%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

19.5% 14.6% 14.6% 31.8% 19.5%

S Corp 60.5%

◼ West

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

25.3%

Contingent / Bonus/ Overrides 9.4%

18.3%

17.9%

Other 1.0%

17.0%

Group L/H/F 5.2%

7.5%

7.4%

5.3%

Personal P&C 23.6%

Commercial P&C 60.8%

-1.2%

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 $2.5 – 5.0 million revenue category had the second highest WASA in the Study (55). • This was only revenue category in this year’s Study that exhibited negative growth (-1.2%) in Group L/H/F. • Agencies in this revenue category generated the second-highest commercial lines organic growth rate (7.5%) across all revenue categories in the 2020 Best Practices Study .

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

35.6%

62.3%

◼ $5K to $10K

◼ From 50 to 100 lives

15.2%

17.2%

◼ $10K to $25K

◼ Over 100 lives

19.3%

20.5%

◼ $25K to $50K

13.2%

◼ > $50K

16.8%

 33