2022 Best Practices Study

Executive Summary

Average Revenues $78,877,265

Regional Distribution

Weighted Average Shareholder Age (WASA) 52.5

 Northeast  Midwest

22.2% 35.6% 15.6% 17.8%

 West

 Southeast  Southwest

Corporate Structure

8.9%

Average Number of Shareholders 28.8 Average Number of Agency Locations 13.8

Profile

Other 2.3%

C Corp 29.5%

LLC 18.2%

S Corp 50.0%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 8.4%

Other 1.2%

29.8%

26.7%

25.4%

19.2%

Group L/H/F 22.9%

Commercial P&C 58.1%

12.5%

8.5%

5.0%

4.8%

Personal P&C 9.3%

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

Notes

Account Stratification

• Firms over $25M have a much greater concentration of life & health business than other size categories, generating 23.0% of revenue from L/H/F commissions & fees. This is over 7% higher than any other category. • The higher concentration of benefits revenue, though, may also explain why the >$25M firms generated a middle-of-the-pack organic growth result at 8.5%, ranking 3 rd across size categories. Benefits organic growth (5.0%) was well below commercial lines (12.5%).

Commercial P&C

Group L/H/F

 < $5K

16.0%

 Under 50 lives

28.1%

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

8.0%

 From 50-100 lives 16.5%

15.4% 14.0% 46.6%

 Over 100 lives

55.4%

 > $50K

>$25M

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