2020 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

93.5% 11.1%

91.6% 15.1%

93.5% 13.1% 0.0% 6.7% 7.4% -0.5%

93.5% 12.6% 0.0% 6.2% 6.2% 4.6% 6.2% 6.2% 7.5%

93.0% 12.2% 0.0% 7.4% 7.2% -2.6% 7.2% 5.8% 7.1% 8.0% -3.2% 9.1% -32.3% 20.5% 13.6% 24.5% 19.0% 19.5% 17.2% 16.8% 15.1% 38.9% 24.7% 34.1% 81.6% 21.4% 16.9% 6.8% 5.5% 100.5%

91.7% 13.7% 0.0% 8.7% 7.0% 1.6% 8.6% 7.0% 6.4%

New Business

Acquired Business

0.0% 7.5% 7.1%

0.0% 6.7% 8.1%

Total Growth

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

-17.3%

7.5% 7.1% 9.6%

6.7% 8.1% 7.9%

7.4% 7.4% 7.9%

Organic Growth

2019 BPS Organic Growth

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

-0.8%

2.1%

5.9%

4.6%

0.3% 8.4%

-35.6% 13.4%

-17.2% -10.9%

-12.3%

-16.1% 17.7%

Investment Income

-0.3% 0.0% 7.9% 8.0%

16.3% -13.8%

Miscellaneous Income

0.0%

0.0%

0.0%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

8.5% 8.1%

6.7% 9.6%

6.7% 6.7%

7.7% 6.8%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

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

Renewal Business

103.6%

101.6%

100.4%

111.0%

98.5% 23.2%

New Business

22.0%

31.7%

20.2%

19.2%

Acquired Business

0.5%

1.6%

4.0%

7.8%

3.5%

Total Growth

23.6% 23.6%

25.9% 26.1%

20.3% 17.3%

33.4% 18.6% 57.9% 19.5% 18.1% 16.2% 27.4% 14.7% 34.6% 42.7% 20.9% 19.7%

18.0% 17.8% 34.0% 17.9% 17.3% 11.9% 25.7% 40.4% 31.7% 203.1% 16.1% 15.6%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

*

6.5%

3.9%

23.6% 23.6% 26.2% 43.5% -35.6% 19.3%

24.8% 24.9% 30.1% 23.3% 35.7% 10.5% 77.3% 27.2% 26.5%

20.0% 17.0% 19.2% 33.1% 28.1% 33.3% 109.1% 21.2% 18.5%

Organic Growth

2019 BPS Organic Growth

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

Investment Income

Miscellaneous Income

4.8%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

23.4% 23.4%

*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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