2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 58.5

$824,641

◼ Northeast ◼ Midwest

18.2% 27.3%

◼ West

9.1%

◼ Southeast ◼ Southwest

40.9%

Corporate Structure

4.5%

Profile

Average Number of Shareholders 1.5 Average Number of Agency Locations 1.2

Sole Prop. 4.5%

C Corp 18.2%

LLC 18.2%

S Corp 59.1%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 6.6%

12.9%

Other 0.6%

11.8%

11.1%

10.9%

8.2%

Group L/H/F 3.8%

6.4%

6.4%

Commercial P&C 43.9%

3.2%

Personal P&C 45.1%

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

• At only 3.8% of gross revenue, Group L/H/F business continues to be a relatively untapped revenue source for this Best Practices revenue category. • Agencies under $1.25M in revenue posted the lowest organic growth rate of all Best Practices revenue groups for the second consecutive year (6.4%).

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

64.4%

49.5%

◼ $5K to $10K

◼ From 50-100 lives 49.4%

10.3%

◼ $10K to $25K

◼ Over 100 lives

11.3%

1.1%

◼ $25K to $50K

8.0%

◼ > $50K

6.0%

<$1.25M

17