2025 Best Practices Study

Executive Summary

Average Revenues $813,367

Regional Distribution

Weighted Average Shareholder Age (WASA) 58.4

Revenue Distribution (as a % of Gross Revenue)

◼

Northeast

6.7%

◼

Midwest

33.3%

Corporate Structure

◼

West

13.3%

Average Number of Shareholders 1.5 Average Number of Agency Locations 1.1

◼

Southeast

46.7%

Sole Prop. 6.7%

C Corp 13.3%

◼

Southwest

0.0%

LLC 13.3% PROFILE & REVENUE GROWTH & STRATIFICATION

◼

Commercial P&C

35.1%

◼

Personal P&C

56.4%

◼

Group L/H/F

4.0%

S Corp 66.7%

◼

Contingent/Bonus

4.0%

◼

Other

0.5%

Notes

Account Stratification

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

Commercial P&C

• Agencies under $1.25M in revenue posted a 9.0% organic growth rate, increasing from 5.4% in 2024. For the first time in three years, this revenue group does not have the lowest overall organic growth rate. • This revenue category generated the highest percentage of revenue from personal lines (56.4%) of all revenue categories.

◼ < $5K

69.2%

16.8%

15.5%

14.2%

◼ $5K to $10K ◼ $10K to $25K ◼ $25K to $50K

13.1%

12.4%

11.2%

6.1%

9.0%

7.2%

2.8%

◼ > $50K

3.4%

8.9%

Group L/H/F

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

◼ <50 Lives

94.5%

◼ 50-100 Lives ◼ >100 Lives

0.8%

Median

Top Quartile

4.7%

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

<$1.25M

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