2025 Best Practices Study Summary

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SUMMARY OF THE BEST PRACTICES STUDY SCALING EXCELLENCE: GROWTH STRATEGIES FOR INSURANCE AGENCIES

2025

©2025 Copyright ©2025 by the Independent Insurance Agents & Brokers of America and Reagan Consulting, Inc. All rights reserved. No portion of this document may be reproduced in any manner without the prior written consent of IIABA or Reagan Consulting. In addition, this document may not be posted as a link on any public or private website without the prior written consent of IIABA or Reagan Consulting.

We wish to thank the following companies for their sponsorship. The funding provided makes possible the development of the 2025 Best Practices Study and the Best Practices Gateway website.

2 Study Sponsors 2025

3 2025 Study Sponsors

Introduction & Overview .....................................................................................................................6

Cross Category Comparison ............................................................................................................ 10 Glossary............................................................................................................................................... 42

4 2025 Table of Contents

Introduction & Overview

6 2025 Best Practices Study

Intro & Overview

About the Study: The History Since 1993, Reagan Consulting and the Big “I” have partnered to produce the Best Practices Study , a comprehensive examination of the top performing agencies across the country. The Study compiles benchmarking data on the key metrics of agency performance and value, including revenue growth and profitability, financial stability, expense management, and sales and operations productivity. The Process Every three years, the Big "I" and Reagan Consulting ask insurance companies, state association affiliates, and other industry organizations to nominate agencies they consider to be among the best in the industry for each of the BPS ' s revenue categories. Nominated agencies are then invited to participate in the Study by completing an in-depth survey detailing their financial and operational year-end results. These results are then scored and ranked objectively to determine which agencies earn the Best Practices agency designation. 2025 is the beginning of the current three-year Study cycle (2025-2028). Over 1,100 independent agencies throughout the U.S. were nominated to participate in the annual Best Practices Study . Although participation took extensive time and effort, 349 of the nominated agencies qualified and were designated as Best Practices agencies. These top-performing agencies' results serve as the foundation for the 2025 Best Practices Study and the next 2 years of the Best Practices Study. Future Participation Inclusion in the Best Practices Study is a prestigious recognition of superior performance. 2025 marks the beginning of a new study cycle. Agencies that believe they have the qualities of a Best Practices agency and wish to be nominated to participate in the 2028-2030 Study cycle should contact their state association or an insurance carrier and ask that their name be submitted. To learn more about nominating your agency to participate in the 2028

Best Practices Study , please contact Reagan Consulting at 404-869-2535. The 2025 Best Practices Study The 2025 Best Practices Study is composed of four primary sections: 1) Study Highlights – an overview of the Study results and the latest industry trends 2) Insights on Agency Generative AI Use – A review of the ways independent agents are currently using and preparing to implement Generative AI. 3) Executive Summaries — Key benchmarks and perspectives are summarized for each of the six revenue categories. 4) Cross Category Comparison — The complete array of Best Practices benchmarks for all six revenue categories, arranged in a side-by-side format that allows for quick metric comparisons. For More Information If you have questions about the information published in the 2025 Best Practices Study , please contact Reagan Consulting at 404-869-2535. Visit the Best Practices Gateway for access to the annual Best Practices Study at: www.reaganconsulting.com/best-practices. Other resources and tools to help agencies improve their performance and enhance the value of their business are also available via the Big "I" website: www.independentagent.com. If you would like to purchase the Study , contact the Big "I" Education Department by calling 800-221 7917 or online at www.independentagent.com/best-practices.

Intro & Overview

9 2025 Best Practices Study

Cross Category Comparison

Detailed Data for All Revenue Categories

10 2025 Best Practices Study

PROFILE

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Average Revenues

$813,367 $775,280

$1,875,302 $1,828,110

$3,686,085 $3,795,352

$7,326,197 $15,989,857 $46,310,934 $290,124,571

2024 BPS Average Revenues

$7,343,435

$16,125,957

$43,847,561

N/A

Regional Distribution Northeast

6.7%

22.2% 25.9%

13.8% 41.4% 10.3% 20.7% 13.8%

18.8% 12.5% 10.4% 43.8% 14.6%

21.8%

22.2% 25.0% 25.0% 16.7% 11.1%

0.0%

Midwest

33.3% 13.3% 46.7%

9.1%

30.8%

West

3.7%

18.2% 32.7% 18.2%

7.7%

Southeast Southwest

40.7%

46.2% 15.4%

0.0%

7.4%

Corporate Structure C Corp

13.3% 66.7%

14.8% 55.6%

20.7% 69.0%

14.6% 58.3%

21.8% 45.5%

30.6% 44.4%

38.5% 38.5%

S Corp

Partnership

0.0%

2.1%

5.5%

2.8%

0.0%

LLC

13.3%

29.6%

10.3%

25.0%

27.3%

19.4%

23.1%

Sole Proprietorship

6.7% 0.0%

0.0% 0.0%

0.0% 2.8%

0.0% 0.0%

Other

Population Density: Less than 50,000 50,000 - 250,000 250,000 - 1,000,000

40.0% 20.0% 33.3%

44.4% 33.3%

58.6% 20.7% 10.3% 10.3%

37.5% 31.3% 16.7% 14.6%

18.2% 27.3% 21.8% 32.7%

22.2% 19.4% 22.2% 36.1%

7.7%

30.8% 30.8% 30.8%

7.4%

More than 1,000,000

6.7%

14.8%

Average Number of Agency Locations

1.1

1.5

2.4

2.6

3.6

7.8

37.2

Number of Shareholders: Low

1.0 1.5 3.0

1.0 1.7 4.0

1.0 2.1 4.0

1.0 3.7

1.0 5.3

2.0

16.0

Average

24.7

149.7 527.0

High

10.0

22.0

123.0

Profile of Largest Shareholder Average Age of Largest Shareholder: Low

39.0 58.3 76.0

35.0 53.4 80.0

37.0 57.3 73.0

33.0 55.5 75.0

37.0 56.4 73.0

37.0 54.9 65.0

48.0 60.4 76.0

Average

High

Average Ownership of Largest SH: Low

50.0% 89.1%

41.0% 81.0%

31.7% 67.0%

20.0% 60.8%

15.3% 57.1%

9.1%

1.1%

Average

33.5% 78.5%

21.1% 72.7%

High

100.0%

What percentage of firms have an ESOP? What percentage of firms are the branch/subsidiary of another corporation?

0.0%

2.1%

1.8%

11.1%

7.7%

0.0%

18.5%

6.9%

4.2%

20.0%

25.0%

7.7%

Cross Category Comparison

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Is your agency a member of a franchise, cluster, alliance/cooperative/network or other "aggregator" group? Assurex Global

- - - -

15.1%

37.1%

50.0%

Combined Agents of America First Choice Agents Alliance

4.0% 4.0%

23.1%

4.5% 4.5% 4.5% 4.5% 2.3% 6.8%

- -

1.9% 5.7% 3.8%

11.4%

16.7%

Insurors Group

- - -

- -

ISU Insurance Agency Network

13.3%

7.7%

5.7%

Intersure

- -

11.3%

14.3%

8.3%

Keystone Insurers Group

20.0%

15.4%

3.8%

Renaissance Alliance Insurance Services / Agency Network Exchange / United Valley Insurance Services

- -

4.0% 8.0% 4.0% 4.0%

4.5% 6.8% 2.3%

5.7%

- -

SecureRisk

3.8% 3.8%

8.3%

SIAA

6.7% 6.7%

7.5%

8.6%

- - - - - -

Smart Choice

- - - -

SouthGroup Insurance

- - -

2.9%

The AC

- -

The Insurance Alliance Network

Iroquois Group

13.3% 40.0%

16.0% 24.0%

11.5% 30.8%

6.8%

13.2% 35.8%

2.9%

None of the Above

31.8%

20.0%

16.7%

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

WASA

58.4

54.0

55.7

53.3

54.3

53.7

46.7

Shareholder Age Banding: Up to Age 35

1.3%

6.4%

0.7%

6.6%

2.4%

3.8%

N/A N/A N/A N/A N/A

Age 36 to 45 Age 46 to 55 Over Age 55

14.8% 26.7% 57.2%

14.5% 30.1% 49.0%

15.6% 27.0% 56.7%

23.0% 19.5% 48.4%

23.8% 21.9% 49.6%

14.3% 30.5% 40.6% 10.8%

Other (ESOP, Outside Investors, etc.)

0.0%

2.5%

2.3%

WASA: Weighted Average Shareholder Age

58.5

58.4

57.6

56.6

55.8

55.7

54.7

54.3

53.8

53.7

53.3

52.4

52.2

49.4

46.7

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2023 BPS 2024 BPS 2025 BPS

Cross Category Comparison

Equity Ownership Shareholder Age Banding Up to age 35 Age 36-45 Age 46-55 Over age 55 Other (ESOP, Outside Investors, etc.)

2.5%

10.8%

2.3%

49.0%

48.4%

49.6%

56.7%

57.2%

40.6%

19.5%

21.9%

30.1%

30.5%

27.0%

26.7%

N/A

23.0%

23.8%

14.5%

14.3%

14.8%

15.6%

6.6%

3.8%

6.4%

1.3%

0.7% $2.5-5M

2.4% $10-25M

<$1.25M

$1.25-2.5M

$5-10M

$25-100M

>$100M

REVENUE BY SOURCE

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Revenue by Source (as % of Gross Revenues): Property & Casualty: Commercial Commissions & Fees

34.7%

49.3%

49.0%

55.4%

52.9%

51.0%

57.2%

Bonds/Surety

0.4%

0.3%

1.1%

3.9%

1.2%

3.1%

2.9% 7.1% 5.5%

Personal Commissions & Fees

56.4%

41.1%

33.3%

22.6%

20.5%

12.1%

Contingent/Bonus

4.0%

5.8%

9.0%

7.0%

6.5%

6.3%

Total P&C

95.5%

96.5%

92.3%

88.9%

81.2%

72.5%

72.7%

Life & Health/Financial: Group Medical Comm & Fees All Other Group Comm & Fees Individual L/H/F Comm & Fees

1.6% 0.3% 2.1% 0.0% 4.0% 0.3% 0.2%

1.0% 0.1% 1.5% 0.1% 2.8% 0.3% 0.4%

3.5% 0.2% 2.1% 0.0% 5.9% 0.9% 0.9%

5.6% 1.7% 1.6% 0.3% 9.2% 1.1% 0.7%

10.6%

14.4%

14.6%

4.2% 0.8% 1.0%

7.1% 2.5% 1.5%

7.5% 1.9% 2.1%

Bonus/Overrides

Total L&H/Financial

16.7%

25.5%

26.0%

Investment

1.4% 0.8%

1.4% 0.6%

0.8% 0.4%

Miscellaneous Gross Revenues

100.0%

Brokerage Comm Expense

0.0%

1.6%

0.4%

0.9%

1.2%

0.9%

2.0%

Net Revenues

100.0%

98.4%

99.6%

99.1%

98.8%

99.1%

98.0%

All Other Group L/H/F Revenue: Life

22.3% 26.0% 42.7%

29.8% 18.8% 10.3%

21.6%

22.8% 18.4% 33.2%

19.6% 15.3% 31.1%

15.8% 13.5% 32.8% 10.2% 13.6%

11.4% 14.1% 19.7%

Disability

7.2%

Dental & Vision

52.6%

Retirement/Pension

0.0% 0.0% 4.3% 0.0% 4.7%

0.0% 0.0% 0.1% 0.0%

0.2% 2.4% 0.3% 0.2%

1.3% 9.4% 2.8% 0.4%

1.0% 9.6% 0.6% 2.3%

4.8%

Worksite/Voluntary/Supplement

14.4%

Long Term Care

1.0% 0.9%

0.3% 3.1%

Employee Benefits TPA

All Other

40.9%

15.4%

11.8%

20.5%

12.1%

32.2%

Total

100.0%

This is a breakdown of commissions and fees listed under "All Other Group Life, Health, and Financial" revenues.

Cross Category Comparison

ACQUISITIONS

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

% of Agencies Making Acquisitions in the Last Fiscal Year: Average Annualized Commissions Acquired:

6.7%

7.4%

17.2%

6.3%

16.4%

33.3%

69.2%

$379,388

$55,420

$136,337

$644,636

$2,128,541

$2,266,032

$25,014,761

% of Agencies Making Acquisitions in Last Fiscal Year

69.2%

43.8%

36.2%

33.3%

25.9%

25.0%

19.4%

17.2%

16.4%

16.3%

12.9%

9.8%

8.9%

7.4%

6.9%

6.7%

6.3%

4.5%

0.0%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2023 BPS 2024 BPS 2025 BPS

ACCOUNT CONCENTRATION

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Largest Single Account (% of NR): Low

0.7% 3.1% 9.8%

0.4% 5.9%

0.9% 3.8%

0.5% 3.5%

0.2% 3.5%

0.4% 2.1% 6.4%

0.7% 1.3% 3.5%

Average

High

30.1%

16.5%

12.2%

11.2%

Ten Largest Accounts (% of NR): Low

1.4%

2.0%

5.1%

0.4%

1.3%

2.5%

4.5% 7.4%

Average

11.9% 26.5%

15.7% 56.5%

14.6% 35.7%

15.2% 37.9%

13.5% 31.0%

10.7% 24.9%

High

13.6%

Largest Single Accounts (% of Net Revenues)

30.1%

16.5%

12.2%

11.2%

9.8%

6.4%

5.9%

3.8%

3.5%

3.1%

2.1%

1.3%

0.9%

0.7%

0.5%

0.4%

0.2%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Low Average

High

Cross Category Comparison

Ten Largest Accounts (% of Net Revenues)

56.5%

37.9%

35.7%

31.0%

26.5%

24.9%

15.7%

15.2%

14.6%

13.6%

13.5%

11.9%

10.7%

7.4%

5.1%

4.5%

2.5%

2.0%

1.4%

1.3%

0.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Low Average

High

ACCOUNT STRATIFICATION

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Account Size:

Commercial P&C *as measured by commissions and fees Greater than $50,000 % of Book

8.9%

9.9%

15.8%

25.3%

32.6%

45.6%

61.5% 290.3

# of Accounts Total Revenue

0.2

1.2

4.7

13.4

27.9

90.3

$11,937 $59,685

$132,589 $107,970

$397,378 $98,167

$1,325,717 $100,115

$3,436,927 $112,686

$11,482,016

$49,109,863

Revenue per Account

$123,736

$155,846

Between $25,000 and $50,000 % of Book

2.8%

4.9%

11.1%

13.3%

13.4%

15.2% 104.1

12.1% 229.7

# of Accounts Total Revenue

0.3

2.3

8.4

19.3

39.1

$10,035 $28,943

$76,372 $33,556

$280,856 $32,354

$646,088 $33,151

$1,344,362

$3,683,179

$7,908,856

Revenue per Account

$34,294

$35,304

$34,711

Between $10,000 & $25,000 % of Book

6.1%

11.8%

17.0%

17.2%

16.7% 109.2

16.2% 247.2

11.5% 466.3

# of Accounts Total Revenue

1.5

10.0

26.3

55.0

$18,014 $12,236

$141,314 $14,415

$394,642 $14,819

$823,648 $14,881

$1,679,531

$3,917,173

$7,336,287

Revenue per Account

$15,278

$15,948

$15,807

Between $5,000 & $10,000 % of Book

13.1%

14.3%

15.7%

12.3%

10.8% 147.3

8.4% 283.9

5.7% 493.8

# of Accounts Total Revenue

5.1

35.9

50.4

77.3

$33,603 $6,599

$214,899

$372,747

$529,498

$1,040,329

$2,030,670

$3,503,460

Revenue per Account

$6,793

$7,214

$6,834

$7,067

$7,225

$7,139

Less than $5,000 % of Book # of Accounts Total Revenue

69.2% 550.5

59.0%

40.4%

31.9%

26.6%

14.6%

9.3%

1,774.6

2,765.5

3,747.3

6,766.8

1,290.9

1,495.5

$266,820

$782,715

$967,675

$1,341,108

$2,257,352

$3,601,520

$5,582,871

Revenue per Account

$746

$745

$980

$1,037

$966

$1,063

$869

Note : Comparison Group Averages are based on the average for each individual line item and therefore may not validate when attempting to replicate calculations.

Cross Category Comparison

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Account Size:

Group L/H/F *as measured by number of lives Over 100 Lives % of Book

4.7%

22.1%

10.8%

19.7%

38.4%

50.4%

65.3% 195.5

# of Accounts Total Revenue

0.1

0.2

1.0

7.2

15.8

90.1

$2,374 $35,605

$5,435 $29,350

$30,985 $35,202

$178,628 $52,448

$1,218,083

$5,677,545

$16,944,028

Revenue per Account

$74,606

$65,297

$90,794

50-100 Lives % of Book

0.8%

1.1%

14.4%

17.2%

18.4%

19.2%

18.5% 129.1

# of Accounts Total Revenue

0.1

0.0

1.7

5.8

14.5

91.9

$430

$565

$23,999 $15,479

$132,492 $25,339

$300,773 $22,262

$1,564,897

$3,735,611

Revenue per Account

$6,443

$15,245

$22,434

$31,220

Under 50 Lives % of Book

94.5%

76.8%

74.8%

63.0%

43.3% 147.7

30.3%

16.2% 932.5

67.3

1,281.5

# of Accounts Total Revenue

5.0

8.8

42.6

$594,672

$2,340,440

$3,525,253

$15,173 $3,002

$14,314 $2,538

$78,237 $2,845

$219,686

$4,681

$6,808

$7,016

Revenue per Account

$4,283

Note : Comparison Group Averages are based on the average for each individual line item and therefore may not validate when attempting to replicate calculations.

SPECIALIZATION

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

% of Agencies with Specialty Rev Average Total Specialty Revenue 1

13.3%

22.2%

37.9%

39.6%

41.8%

55.6%

53.8%

$263,351

$550,555

$1,750,467

$2,771,521

$11,074,072

$18,208,522

$79,027,562

Average % Net Revenue 1

26.7%

30.3%

34.0%

37.6%

44.1%

39.9%

48.1%

1 Only for those firms who reported speciality revenues

% of Agencies with Specialty Revenue

74.5%

67.4%

64.3%

66.7%

59.1%

56.3%

55.6%

53.8%

50.0%

48.4%

41.8%

41.7%

39.6%

37.9%

33.3%

24.1%

22.2%

13.3%

10.5%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2023 BPS 2024 BPS 2025 BPS

Cross Category Comparison

REVENUE BY SPECIALTY

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Specialty Revenues: % of Comparison Group with this Specialty: Agriculture

16.7% 47.2%

38.5% 53.8% 15.4% 15.4% 23.1% 23.1% 15.4% 30.8% 15.4%

0.0% 6.7% 0.0% 0.0% 6.7% 0.0% 0.0% 0.0% 6.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 7.9% 0.0% 0.0% 2.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

3.7% 7.4% 0.0% 3.7% 0.0% 3.7% 3.7% 3.7% 0.0% 0.0% 0.0% 0.0% 3.7% 0.0% 7.4% 0.0% 6.3% 0.0% 1.3% 3.0% 0.0% 0.0% 0.0% 0.0% 2.2% 0.0% 6.8% 50.0% 42.6% 18.8%

20.7% 24.1%

8.3%

7.3%

Construction

22.9%

21.8%

Cyber Energy

3.4% 6.9%

4.2% 8.3%

3.6% 1.8% 7.3%

5.6%

22.2% 22.2% 30.6% 33.3% 16.7% 16.7% 36.1% 19.4% 8.3%

Government/Municipality

17.2%

12.5% 6.3% 6.3% 8.3% 4.2% 4.2% 8.3% 0.0% 6.3% 14.6% 16.7%

Healthcare Hospitality

6.9%

12.7% 14.5% 10.9% 20.0% 18.2% 16.4% 5.5%

10.3% 13.8%

Manufacturing

Management Liability / D&O

0.0% 3.4%

7.7%

Non-profits Real Estate

10.3% 24.1%

30.8% 38.5%

Schools/Education

Technology

3.4%

7.3%

5.6%

7.7%

Transportation

13.8% 20.7%

14.5% 14.5%

25.0% 19.4%

30.8% 30.8%

Other

For firms that specialize in this, what % of NR is from this specialty? Agriculture

7.3%

10.2% 27.4%

6.6%

2.1%

2.9%

12.0%

10.2% 3.0% 7.6% 2.1% 8.0% 1.7% 1.8% 5.1% 5.9% 3.8% 8.7% 9.6% 11.0% 11.4%

Construction

15.3%

19.4%

0.7% 1.8% 3.1% 5.6% 2.1% 9.1% 3.0% 8.7% 8.1% 3.4%

Cyber Energy

0.4% 5.5% 3.7% 4.7% 3.2% 7.3% 0.0% 2.9% 7.8% 7.3% 1.8% 2.9% 6.2%

0.7% 9.3% 6.5% 2.1% 1.7% 3.6% 1.0%

0.7% 0.2% 4.9% 2.5% 7.3% 5.6% 2.8%

Government/Municipality

Healthcare Hospitality

Manufacturing

Management Liability / D&O

43.0%

Non-profits Real Estate

28.9% 10.8%

12.3% 15.9%

Schools/Education

6.5% 0.0% 3.2%

4.3% 2.5%

Technology

12.0%

Transportation

15.0% 13.3%

3.1%

15.3%

Other

12.1%

Cross Category Comparison

REVENUE GROWTH

AGENCIES WITH REVENUES OF:

MEDIAN

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Revenue Growth by Source: TOTAL COMMISSIONS & FEES Renewal Business

97.7% 14.1%

96.6% 11.7%

97.5% 13.0%

96.8% 14.2%

97.7% 11.8%

96.3% 13.8%

92.9% 12.6%

New Business

Acquired Business

0.0% 9.0% 9.0%

0.0%

Total Growth

10.2% 10.1% 41.3%

10.2% 10.4% 14.3%

11.8% 11.3% 22.8%

10.3% 8.7% -2.5%

10.2% 9.5% -8.9% 10.2% 9.5% 9.8% -5.8% -5.5% 15.5% 13.0%

12.0%

Organic Growth

9.7%

Brokerage Commission Expense Net Commissions and Fees Total Growth

N/A

12.6%

9.0%

10.2%

11.8%

10.3% 8.7%

12.0% 9.7%

Organic Growth

9.0% 5.4%

10.1% 11.4%

10.4% 11.7%

11.3% 11.3%

2024 BPS Organic Growth

10.4%

N/A

P&C Contingent Income L/H/F Bonus Income Investment Income Miscellaneous Income

9.8%

-25.2% 50.0%

-1.2% 21.0% 20.2% -0.5%

15.5% -20.5% 24.0% 12.9%

1.7% 4.1%

11.1%

16.3% 22.9% 31.9%

9.2% 9.0% 3.2%

-6.6% 7.4%

11.3% 22.8%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

8.6% 8.6%

6.4% 6.4%

9.6% 9.6%

10.5%

10.5% 10.3%

9.6% 8.7%

11.2%

9.5%

9.6%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Renewal Business

99.6% 16.3%

100.3%

101.1%

101.4%

100.4%

99.3% 16.7%

95.5% 18.1%

New Business

18.0%

16.5%

18.0%

16.9%

Acquired Business

0.0%

2.3%

3.1%

Total Growth

12.4% 12.4%

18.2% 16.4% 55.8% 16.4% 15.9% 16.1% -0.4% 50.0% 14.3%

13.8% 13.3% 34.6% 14.4% 13.7% 14.7% 11.9% 21.0% 25.7% 11.3% 14.7% 14.1%

15.6% 15.2% 50.5% 15.3% 15.1% 16.1% 29.1% -12.1% 38.9% 59.5% 16.2% 16.1%

16.3% 15.8% 14.9% 16.2% 15.5% 15.6% 17.4% 17.0% 26.9% 119.3%

15.3% 12.9% 26.9% 16.5% 12.8% 14.4% 11.1% 16.9% 33.9% 110.0%

18.8% 11.8% 39.4%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

N/A

12.4% 12.4% 12.1% 15.2% 16.3% 30.6% 37.8% 12.2% 12.2%

18.4% 12.0%

Organic Growth

2024 BPS Organic Growth

N/A

P&C Contingent Income L/H/F Bonus Income Investment Income Miscellaneous Income

20.7% 22.0% 18.6% 26.4% 17.9% 12.8%

8.7%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

14.9% 13.5%

16.1% 14.2%

15.3% 12.3%

Note: The Median is the mid-point in a list of data – it is different than the Mean or Average. Median data cannot be added/subtracted to arrive at related Medians. Each data point presented above (Renewal Business %, New Business %, Total Growth %, Organic Growth %, etc.) must be viewed as a discrete Median data point.

Cross Category Comparison

Net Commissions & Fees Organic Growth

15.9%

15.5%

15.1%

13.7%

12.8%

12.4%

12.0%

11.7%

11.4%

11.3%

10.4%

10.1%

9.7%

9.5%

9.0%

9.8%

8.7%

5.4%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS Median 2025 BPS Median 2025 BPS Top Quartile

Net Revenue Organic Growth

16.1%

14.2%

14.1%

13.5%

12.8%

12.3%

12.2%

11.8%

11.4%

10.8%

10.3%

9.6%

9.5%

9.6%

8.7%

8.6%

6.4%

5.6%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS Median 2025 BPS Median 2025 BPS Top Quartile

Cross Category Comparison

Median Organic Growth in Net Commissions & Fees by Line of Business (excluding contingents, bonuses & overrides)

Total Agency

Commercial Lines

14.1%

11.4% 11.7% 11.3%

11.3%

12.4%

12.3%

12.1%

10.4%

11.8% 12.4%

10.1% 10.4%

9.8%

9.5% 9.7%

9.0%

10.0%

8.7%

9.7%

8.3%

7.7%

7.2%

7.4%

5.4%

2.2%

N/A

< $1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

2024 2025

Personal Lines

Group L/H/F

13.3%

13.9%

11.2%

12.2% 12.2%

11.0%

11.2%

9.4%

10.7%

10.7% 10.5%

10.5%

10.1%

8.3%

9.2%

9.0%

7.3% 7.1%

7.6%

6.5%

3.6%

3.4%

1.5%

0.8%

0.7%

N/A

< $1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

2024 2025

Note : Commercial P&C includes Bond/Surety. Group L/H/F includes Group Medical, All Other Group, and Individual L/H/F .

Cross Category Comparison

REVENUE GROWTH BY LINE OF BUSINESS

AGENCIES WITH REVENUES OF:

MEDIAN

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

REVENUE GROWTH BY LINE OF BUSINESS: Commercial P&C Renewal Business

93.1% 13.3%

93.9% 11.3%

97.1%

98.4% 12.3%

98.0% 12.1%

96.2% 12.2%

91.9% 13.3%

New Business

9.6% 0.0% 9.7% 9.7%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 1.9% 1.9%

0.0% 9.3% 7.9%

0.0%

0.0% 8.9% 8.5%

0.0%

12.2% 11.2%

11.6% 10.0%

10.1%

9.6%

Bonds/Surety

Renewal Business

68.3% 11.6%

68.4% 14.2%

32.8% 39.2%

48.3% 52.5%

39.1% 55.5%

79.2% 39.9%

66.2% 28.9%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 1.8% 1.8%

0.0% 0.0% 0.0%

0.0% 6.7% 6.7%

0.0% 9.0% 9.0%

0.0%

0.0% 7.8% 6.9%

0.0%

11.0% 11.0%

17.4% 17.4%

Personal P&C

Renewal Business

100.0%

101.6%

100.3%

99.1% 11.8%

99.9%

99.1% 11.2%

98.6%

New Business

12.1%

12.6%

11.3%

9.3% 0.0% 9.7% 9.2%

8.5% 0.0%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

11.2% 11.2%

13.4% 13.9%

11.6% 11.0%

10.6% 10.5%

12.1% 10.7%

12.3% 10.5%

Group Medical

Renewal Business

100.0%

99.2%

93.1% 11.7%

97.9%

96.9%

95.5% 10.4%

94.7% 12.9%

New Business

0.0% 0.0% 3.6% 3.6%

4.5% 0.0% 3.9% 3.9%

7.4% 0.0% 7.4% 7.5%

9.3% 0.0% 7.4% 7.2%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 5.8% 5.8%

0.0% 3.3% 3.3%

0.0%

12.4% 10.5%

All Other Group

Renewal Business

96.9%

67.7%

86.8% 11.5% 0.0% -3.2% -3.2% 53.0% 33.5% 0.0% -8.6% -8.6%

90.4%

98.5%

95.6% 11.8%

99.7% 12.9%

New Business

0.0% 0.0%

9.4% 0.0% 0.8% 0.8%

9.3% 0.0%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 7.6% 7.6%

0.0%

21.6% 21.6%

13.1% 13.1%

10.0% 10.0%

18.2% 16.0%

Individual L/H/F

Renewal Business

27.4% 54.8%

38.6% 30.7%

63.9% 32.3%

63.2% 43.9% 0.0% -3.1% -3.1%

66.9% 28.8%

75.5% 32.2%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0% 3.2% 3.2%

0.0% 8.4% 8.4%

0.0% 3.7% 1.9%

0.0%

12.5% 12.5%

13.6% 10.5%

Cross Category Comparison

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

REVENUE GROWTH BY LINE OF BUSINESS: Commercial P&C Renewal Business

103.0%

102.1%

99.7% 14.5%

97.4% 16.9%

102.4%

99.4% 21.0%

103.1%

New Business

17.6%

15.8%

17.1%

15.3%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.8%

2.4%

14.2% 14.2%

16.7% 16.3%

14.2% 14.0%

17.3% 17.3%

17.0% 16.0%

14.5% 10.9%

19.1% 11.2%

Bonds/Surety

Renewal Business

100.0%

86.6% 62.7%

70.9% 74.4%

90.4% 81.5%

84.4% 96.6%

100.0%

103.5%

New Business

16.8%

76.5%

64.7%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 8.4% 8.4%

0.0%

14.2% 14.2%

46.8% 46.8%

21.5% 21.5%

28.0% 28.0%

24.2% 24.2%

31.5% 31.5%

Personal P&C

Renewal Business

102.9%

107.0%

105.8%

104.3%

103.9%

103.6%

101.4%

New Business

15.1%

17.1%

16.6%

15.9%

13.3%

15.9%

11.9%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

3.1%

0.0%

15.5% 15.5%

19.1% 19.7%

21.3% 21.2%

16.4% 15.4%

16.2% 15.6%

19.1% 14.2%

20.0% 13.5%

Group Medical

Renewal Business

102.4%

101.2%

102.1%

102.5%

103.1%

100.1%

101.8%

New Business

1.2% 0.0% 5.5% 5.5%

7.8% 0.0%

16.4%

18.6%

12.1%

15.2%

15.9%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

2.0%

11.9% 11.9%

12.5% 12.5%

11.7% 12.1%

13.2% 13.1%

11.5% 11.5%

21.0% 16.2%

All Other Group

Renewal Business

112.0%

113.7%

96.3% 22.4% 0.0% -1.1% -1.1%

105.7%

110.3%

105.8%

104.5%

New Business

12.4%

42.7%

18.4%

19.7%

19.0%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0% 7.5% 7.5%

0.0%

24.4% 24.4%

17.7% 17.7%

18.7% 18.7%

18.6% 17.7%

33.3% 33.1%

Individual L/H/F

Renewal Business

96.6%

77.9% 87.1%

83.7% 60.4%

99.2% 59.8%

100.0%

87.9% 75.5%

82.7% 49.0%

New Business

121.7%

78.6%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0% 9.2% 9.2%

0.0%

28.4% 28.4%

11.9% 11.9%

21.5% 20.4%

10.7% 10.7%

10.7%

32.1% 32.1%

8.6%

Cross Category Comparison

SALES VELOCITY

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Sales Velocity: Average

13.4% 16.3%

14.3% 18.0%

12.7% 15.8%

14.9% 18.4%

13.6% 17.6%

14.3% 16.6%

15.0% 17.7%

Top Quartile

Age Banding of Sales Velocity: Up to age 35

0.5% 5.3% 4.3% 3.3%

1.5% 3.7% 5.3% 3.9%

1.0% 4.8% 2.5% 4.3%

3.4% 4.7% 3.2% 3.7%

2.8% 4.4% 3.3% 3.2%

2.3% 4.2% 3.3% 4.5%

2.1% 5.1% 3.5% 4.2%

Age 36-45 Age 46-55 Over age 55

Sales Velocity

18.4%

18.0%

17.7%

17.6%

16.6%

16.3%

15.9%

15.8%

15.1%

15.0%

14.9%

14.3%

15.0%

14.0%

13.6%

13.4%

14.1%

12.7%

13.4%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS Average 2025 BPS Median 2025 BPS Top Quartile

• Sales Velocity is an excellent measure of an agency’s success in writing new business. It is calculated by dividing new commission and fee income written by prior year commission and fee income. • The Age Banding of Sales Velocity takes it a step further by showing Sales Velocity contributions by different producer age groupings (35 and under, 36-45, 46-55, over 55).

Age Banding of Sales Velocity

3.7%

4.2%

3.9%

3.2%

4.5%

3.3%

4.3%

3.2%

3.5%

3.3%

4.3%

5.3%

2.5%

4.7%

4.4%

5.1%

4.2%

4.8%

3.7%

5.3%

3.4%

2.8%

2.3%

2.1%

1.5%

1.0%

0.5%

<$1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Up to age 35

Age 36-45

Age 46-55

Over age 55

Cross Category Comparison

PRO FORMA EXPENSES (expressed as a percentage of pro forma net revenues)

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Compensation

Payroll Employees

35.0%

38.4%

43.7%

45.6%

48.9%

52.3%

51.9%

"Non-employees" (1099 Prods/outsourced)

1.5%

4.1%

0.6%

3.2%

2.8%

2.3%

2.9%

Total Payroll Benefits Payroll Taxes

36.5%

42.5%

44.3%

48.8%

51.7%

54.5%

54.8%

3.6% 1.0% 2.1% 0.3% 7.0% 0.7% 0.7% 2.1% 3.5% 4.2% 1.1% 3.8% 0.7% 0.2% 0.7% 0.9% 0.6% 1.7% 1.1% 0.1% 0.2% 0.3% 0.2% 1.0% 1.0% 0.3% 1.4% 0.1% 3.9% 66.9% 27.9% 28.2% 16.0% 43.5%

3.1% 1.2% 3.0% 0.2% 7.5% 0.6% 0.6% 1.3% 2.5% 4.2% 0.2% 3.3% 0.6% 0.1% 0.4% 1.1% 0.4% 1.3% 1.2% 0.0% 0.3% 0.4% 0.5% 0.6% 1.6% 0.2% 1.4% 0.8% 4.6% 71.1% 28.9% 29.7% 14.0% 50.0%

3.2% 2.0% 3.2% -0.3% 8.0% 0.8% 0.5% 1.2% 2.6% 3.3% 0.3% 3.1% 0.4% 0.1% 0.6% 0.8% 0.3% 1.3% 0.9% 0.1% 0.3% 0.4% 0.5% 0.7% 1.6% 0.2% 0.7% 0.2% 3.3% 70.8% 29.2% 29.6% 12.5% 52.3%

3.1% 1.8% 3.2% 0.4% 8.5% 0.9% 0.4% 1.0% 2.3% 3.5% 0.3% 2.8% 0.4% 0.1% 0.5% 0.8% 0.3% 1.1% 0.7% 0.1% 0.6% 0.2% 0.3% 0.4% 1.5% 0.2% 0.7% 0.3% 3.1% 74.5% 25.5% 28.1% 11.8% 57.3%

3.2% 1.5% 3.1% 0.2% 8.0% 1.0% 0.4% 0.8% 2.2% 3.0% 0.2% 3.1% 0.3% 0.1% 0.3% 0.7% 0.4% 1.0% 0.9% 0.1% 1.2% 0.3% 0.4% 0.6% 1.5% 0.1% 1.2% 1.0% 4.4% 78.3% 21.7% 24.9% 12.0% 59.8%

3.1% 1.8% 3.7% 0.3% 8.8% 1.4% 0.4% 1.0% 2.8% 2.9% 0.2% 3.0% 0.3% 0.1% 0.2% 0.5% 0.3% 1.0% 0.9% 0.1% 1.4% 0.3% 0.5% 0.6% 2.0% 0.1% 1.0% 0.4% 4.0% 81.7% 18.3% 22.3% 11.6% 63.4%

2.8% 1.3% 3.3% 0.2% 7.7% 1.8% 0.3% 1.1% 3.2% 2.8% 0.2% 2.9% 0.3% 0.1% 0.2% 0.5% 0.2% 0.9% 1.2% 0.1% 0.8% 0.3% 0.5% 1.0% 2.3% 0.0% 8.5% 1.8%

Retirement Insurance

Other

Total Benefits

Total Compensation

62.5%

Selling Travel and Ent./Conventions

Automobile Expense Advertising/Promotions

Total Selling

Operating Occupancy Expenses 1

Office Equipment Expenses

IT Expenses Telephone

Postage

Supplies/Printing

Dues/Subscriptions/Contributions

Taxes/Licenses

Insurance

Professional Fees

Bad Debts

Outside Services Education/Training

Miscellaneous Total Operating Administrative Depreciation

11.1%

Amortization of Intangibles

Officer Life

Interest

Other

Total Administrative

13.6% 90.5%

TOTAL EXPENSES (PRO FORMA)

PRO FORMA PRE-TAX PROFIT/LOSS

9.5%

PRO FORMA EBITDA 2

23.1%

1 For firms that own their building and reported a much lower than peer expense load, we have normalized their occupancy expense. 2 Pro Forma EBITDA reflects normalized income and expenses after discretionary owner expenses are eliminated; excludes all administrative expenses.

Cross Category Comparison

PROFITABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Pre-Tax Profit

25.1% 27.9% 26.9% 28.2%

25.7% 28.9% 26.9% 29.7%

25.5% 29.2% 28.6% 29.6%

23.1% 25.5% 25.6% 28.1%

19.6% 21.7% 22.9% 24.9%

13.5% 18.3% 19.0% 22.3%

5.4% 9.5%

Pro Forma Pre-Tax Profit

EBITDA

19.5% 23.1%

Pro Forma EBITDA 1

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Pre-Tax Profit

33.1% 31.0% 36.5% 36.0%

35.4% 39.1% 35.4% 39.1%

34.1% 35.8% 35.5% 36.1%

31.1% 32.4% 33.6% 35.8%

25.5% 25.7% 28.2% 30.3%

21.8% 23.7% 27.2% 27.2%

19.2% 18.8% 23.9% 27.2%

Pro Forma Pre-Tax Profit

EBITDA

Pro Forma EBITDA 1

1 Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other).

Pre-Tax Profit

35.4%

34.1%

33.1%

31.1%

25.7%

25.5%

25.1%

23.1%

21.8%

19.6%

19.2%

13.5%

5.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma Pre-Tax Profit

39.1%

35.8%

32.4%

31.0%

29.2%

28.9%

27.9%

25.7%

25.5%

23.7%

21.7%

18.8%

18.3%

9.5%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Cross Category Comparison

EBITDA

36.5%

35.5%

35.4%

33.6%

28.6%

28.2%

27.2%

26.9%

25.6%

23.9%

22.9%

19.5%

19.0%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma EBITDA

39.1%

36.1%

36.0%

35.8%

30.3%

29.7%

29.6%

28.2%

28.1%

27.2%

24.9%

23.1%

22.3%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Note : Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other.)

RULE OF 20

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

The Rule of 20:

Low

0.9

-10.0 27.4 48.5 35.6

5.8

9.0

-19.8 22.0 42.4 29.5

3.2

Average

27.4 48.6 33.7

26.7 49.0 30.4

26.0 47.9 33.2

20.7 44.1 26.4

23.9 43.4 26.9

High

Top Quartile

Rule of 20

35.6

33.7

33.2

30.4

29.5

27.4

26.9

26.8

26.7

26.4

26.0

25.5

24.8

23.9

23.4

22.0

21.7

20.7

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS Average 2025 BPS Average 2025 BPS Top Quartile

Cross Category Comparison

FINANCIAL STABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Current Ratio

0.56:1

2.07:1 1.94:1 14.5% 29.3%

1.97:1 2.64:1 33.9% 36.4%

2.20:1 2.58:1 17.3% 80.5% 12.6% 15.5% 28.5% 71.5%

1.70:1 2.46:1 18.5% 61.0% 11.0% 16.7% 31.8% 68.2%

1.55:1 2.04:1 19.8% 59.9%

1.20:1 1.43:1

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days % of P&C Revenues - Agency Billed % of P&C Revenues - Direct Billed

12.1%

5.7%

194.4%

74.0%

0.4%

6.7% 8.3%

7.2%

9.1%

10.5%

N/A

38.9%

13.4%

7.7%

9.1%

17.4% 82.6%

17.2% 82.8%

42.6% 57.4%

41.9% 58.1%

90.9%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Current Ratio

0.68:1

3.76:1 2.27:1 21.8%

2.52:1 3.67:1 58.2% 11.2%

2.88:1 2.95:1 26.7% 50.1%

2.23:1 3.11:1 30.0% 36.6%

1.84:1 2.54:1 30.2% 45.0%

1.21:1 1.52:1

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days

24.2%

9.9%

194.4%

4.0%

44.7%

0.0%

0.0% 3.7%

0.3%

0.1% 4.5%

0.7% 3.5%

0.7% 2.0%

1.4% 3.7%

N/A

15.8%

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Debt Metrics: % of All Loans by Source Type: Community Bank

14.8% 14.8% 11.1% 11.1% 48.1%

52.3%

37.9% 17.4%

49.7%

39.5% 13.0%

30.9%

43.3%

Industry Lender

4.5% 1.1%

9.4% 0.0%

8.8% 6.4%

0.0%

Private Equity Lender

0.0%

6.4%

18.2% 38.5%

Shareholder

37.5%

32.6% 12.1%

24.0% 16.8%

27.3% 13.9%

31.9% 22.1%

Other

4.5%

0.0%

% of Firms that have Identified Debt

60.0%

40.7%

37.9%

45.8%

47.3%

47.2%

46.2%

Of those firms that have debt: Average Total Debt

$314,957

$508,378

$1,240,897

$1,775,111

$7,610,127

$13,724,822

$138,324,480

Total Leverage 1

1.5x 7.1%

1.3x 5.9%

1.1x 5.6%

1.1x 5.3%

1.7x 5.3%

1.4x 5.8%

4.1x 7.1%

Average Effective Interest Rate Average Term (Years to Maturity)

6.6

8.6

6.4

7.2

8.7

6.6

5.5

1 Total Debt/Pro Forma EBITDA

Cross Category Comparison

TECHNOLOGY

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Number of IT Employees (includes regularly outsourced IT support staff) IT Payroll as % of Pro Forma Net Rev IT Expense as % of Pro Forma Net Rev

0.1

0.2

0.3

0.9

3.4

11.5 0.8% 2.9%

0.2% 3.8%

0.4% 3.3%

0.4% 3.1%

0.3% 2.8%

0.5% 3.1%

0.7% 3.0%

Top Agency Mgmt Systems Used in Home Office: (excl. comp, hardware depreciation & software amortization)

AMS360

13.3% 13.3% 13.3%

33.3% 40.7%

24.1% 62.1%

37.5% 47.9%

27.3% 67.3%

19.4% 61.1%

7.7%

EPIC

92.3%

EZLynx Sagitta

3.7%

- - - -

2.1%

- - - - - -

1.8% 1.8%

13.9%

HawkSoft Nexsure

13.3%

3.7%

2.1% 2.1% 2.1% 6.3%

- - -

- -

Xanatek - IMS

3.7%

3.4%

Other

46.7%

14.8%

10.3%

1.8%

5.6%

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Does Agency Have CRM System? Does Agency Have Data Tool?

46.7% 26.7% 11.5%

29.6% 29.6% 22.0%

31.0% 37.9% 22.0% 11.1% 11.1% 44.4% 11.1%

33.3% 29.2% 23.3%

54.5% 50.9% 25.0%

63.9% 66.7% 60.0%

100.0% 100.0%

Does Agency Invest in AI?

84.2%

CRM is Salesforce CRM is HubSpot CRM is AgencyZoom

12.5%

25.0%

30.0%

47.8% 26.1%

46.2%

6.3%

6.7%

7.7%

85.7%

25.0%

25.0% 18.8%

20.0% 10.0%

4.3%

CRM is Pipedrive

15.4%

CRM is Microsoft Dynamics

13.0%

7.7%

CRM is Other

14.3%

62.5%

22.2%

25.0%

33.3%

8.7%

23.1%

Note: these results do not reflect agency management system usage across the entire independent broker landscape. They are simply the results of the finite number of Best Practices agencies. Across the industry, agency management system usage varies materially from these results.

CRM, Data Tools and Artificial Intelligence

Have CRM System Have Data Tool

Invest in AI

100.0%

84.2%

66.7%

63.9%

60.0%

54.5%

50.9%

46.7%

37.9%

33.3%

31.0%

29.6%

29.2%

26.7%

25.0%

23.3%

22.0%

11.5%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Cross Category Comparison

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