2022 Best Practices Study

Executive Summary

Average Revenues $1,845,007

Regional Distribution

Weighted Average Shareholder Age (WASA) 50.8

 Northeast  Midwest

30.0% 30.0%

 West

3.3%

 Southeast  Southwest

26.7% 10.0%

Corporate Structure

Average Number of Shareholders 2.0 Average Number of Agency Locations 2.3

Profile

C Corp 20.0%

LLC 23.3%

S Corp 56.7%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 10.0%

25.0%

Other 0.9%

21.5%

19.5%

12.1%

Group L/H/F 5.4%

Commercial P&C 45.8%

10.1%

8.2%

4.4%

Personal P&C 38.0%

0.5%

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 .

Revenue and Growth

Account Stratification

Notes

• This is the smallest revenue size group for which commercial P&C commissions and fees exceed that of personal lines. • A majority of both CL and EB books are comprised of small accounts (under $5K for CL and <50 lives for EB).

Commercial P&C

Group L/H/F

 < $5K

55.6% 14.7% 12.7%

 Under 50 lives

84.0%

 $5K to $10K  $10K to $25K  $25K to $50K

 From 50-100 lives

8.3% 7.7%

 Over 100 lives

8.8% 8.3%

 > $50K

$1.25-2.5M

25