2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

LLC 13.9%

C Corp 27.8%

Partner- ship 5.6%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

16.7%

S Corp 52.8%

8.3%

◼ West

11.1% 36.1% 27.8%

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

22.6%

Contingent / Bonus/ Overrides 8.0%

16.8%

Other 1.3%

15.6%

13.2%

7.5%

6.6%

Group L/H/F 22.8%

5.8%

4.6%

Commercial P&C 50.5%

Personal P&C 17.4%

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

• Total organic growth for agencies in the $10.0 – 25.0 million revenue category was the lowest among all size categories in the Study at 5.8%. • Agencies in this group had the second-highest growth rate in Group L/H/F at 7.5%. • This revenue category is the first in this year’s Study in which the largest concentration of Group L/H/F business is in the “over 100 lives” account size bucket (44.7%).

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

23.8%

33.9%

◼ $5K to $10K

◼ From 50 to 100 lives

11.9%

20.1%

◼ $10K to $25K

◼ Over 100 lives

18.2%

44.7%

◼ $25K to $50K

14.7%

◼ > $50K

31.3%

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