2025 Best Practices Study

Executive Summary

Average Revenues $7,326,197

Regional Distribution

Weighted Average Shareholder Age (WASA) 53.3

Revenue Distribution (as a % of Gross Revenue)

◼

Northeast

18.8%

◼

Midwest

12.5%

Corporate Structure

◼

West

10.4%

C Corp 14.6%

Average Number of Shareholders 3.7 Average Number of Agency Locations 2.6

◼

Southeast

43.8%

LLC 25.0%

◼

Southwest

14.6%

• PROFILE & REVENUE GROWTH & STRATIFICATION Partner ship 2.1%

◼

Commercial P&C

59.3%

◼

Personal P&C

22.6%

S Corp 58.3%

◼

Group L/H/F

8.9%

◼

Contingent/Bonus

7.3%

◼

Other

1.9%

Notes

Account Stratification

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

Commercial P&C

The $5M to $10M revenue group posted an 11.3% organic growth rate, the highest organic growth rate of all Best Practices revenue groups. This is unchanged from last year ’s rate . • Group L/H/F growth rate slowed from 9.4% last year to 6.5% this year. Personal P&C organic growth rose to 10.5% this year vs. 9.0% last year.

◼ < $5K

17.9%

31.9%

15.4%

15.1%

14.1%

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

12.3%

12.1%

11.3%

10.5%

17.2%

13.3%

6.5%

◼ > $50K

25.3%

Group L/H/F

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

◼ <50 Lives

63.0%

◼ 50-100 Lives ◼ >100 Lives

17.2%

Median

Top Quartile

19.7%

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

$5-10M

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