2023 Best Practices Study

Executive Summary

Average Revenues

Regional Distribution

Weighted Average Shareholder Age (WASA) 52.2

$7,054,326

◼ Northeast ◼ Midwest

17.9% 23.2% 12.5% 30.4% 16.1%

◼ West

◼ Southeast ◼ Southwest

Corporate Structure

Profile

Average Number of Shareholders 5.6 Average Number of Agency Locations 2.5

Other 1.8%

C Corp 16.1%

LLC 30.4%

Partner ship 1.8%

S Corp 50.0%

Revenue Distribution (as a % of Gross Revenue)

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

16.8%

Contingent/ Bonus/ Overrides 8.2%

16.3%

Other 1.3%

11.1%

10.8%

10.4%

Group L/H/F 11.5%

8.4%

7.9%

3.6%

Commercial P&C 57.4%

Personal P&C 21.6%

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

• Organic growth rate both median (10.8%) and Top Quartile (16.8%) in this revenue category posted the highest of all size categories. • Agencies with $5 – 10M in revenue posted the second highest proportion of gross revenues from Commercial P&C (57.4%).

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

32.1%

38.5%

◼ $5K to $10K

◼ From 50-100 lives 37.2%

13.5%

◼ $10K to $25K

◼ Over 100 lives

17.9%

24.3%

◼ $25K to $50K

13.4%

◼ > $50K

23.0%

$5-10M

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