2022 Best Practices Study

Executive Summary

Average Revenues $3,608,575

Regional Distribution

Weighted Average Shareholder Age (WASA) 54.1

 Northeast  Midwest

9.8%

27.9%

 West

8.2%

 Southeast  Southwest

37.7% 16.4%

Corporate Structure

Average Number of Shareholders 3.3 Average Number of Agency Locations 2.4

Profile

C Corp 15.0%

LLC 21.7%

Partner ship 1.7%

S Corp 61.7%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 8.4%

Other 2.8%

29.3%

23.9%

19.1%

Group L/H/F 8.2%

15.0%

12.8%

Commercial P&C 52.6%

8.3%

4.2%

4.0%

Personal P&C 28.1%

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

• BPS firms with $2.5–$5M in revenue generate 89% of their gross revenues from property & casualty commissions and contingencies. • Agencies in this revenue category posted median organic growth of 8.3% - outperforming the two smaller revenue categories but lagging the three larger revenue categories.

Commercial P&C

Group L/H/F

 < $5K

41.6% 14.3% 17.8% 11.5% 14.8%

 Under 50 lives

64.5%

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

 From 50-100 lives 16.2%

 Over 100 lives

19.3%

 > $50K

$2.5-5M

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