2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 49.4

$1,815,319

◼ Northeast ◼ Midwest

22.6% 25.8 %

◼ West

6.5%

◼ Southeast ◼ Southwest

38.7%

Corporate Structure

6.5%

Profile

Average Number of Shareholders 2.0 Average Number of Agency Locations 1.5

C Corp 12.9%

LLC 25.8%

S Corp 61.3%

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 8.4%

Other 0.9%

20.9%

15.9%

14.5%

13.1%

8.7%

8.1%

Group L/H/F 4.4%

7.8%

Commercial P&C 48.0%

Personal P&C 38.3%

-4.0%

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 youngest WASA of all revenue categories at 49.4, almost 3 years younger than the next closest revenue category ($5- $10M). Group L/H/F revenue remains an opportunity for growth for this revenue category. At 4.4% of revenue, it is 2.7% less than that of the $2.5-$5M revenue category. •

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

57.9%

46.3%

◼ $5K to $10K

◼ From 50-100 lives 46.3%

13.3%

◼ $10K to $25K

◼ Over 100 lives

13.7%

7.3%

◼ $25K to $50K

7.0%

◼ > $50K

8.1%

$1.25-2.5M

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