2025 Best Practices Study

Executive Summary

Average Revenues $15,989,857

Regional Distribution

Weighted Average Shareholder Age (WASA) 54.3

Revenue Distribution (as a % of Gross Revenue)

    

Northeast

21.8%

Midwest

9.1%

Corporate Structure

West

18.2% 32.7% 18.2%

Average Number of Shareholders 5.3 Average Number of Agency Locations 3.6

Southeast

C Corp 21.8%

LLC 27.3%

Southwest

Partner ship 5.5% PROFILE & REVENUE GROWTH & STRATIFICATION

    

Commercial P&C

54.1% 20.5% 15.6%

Personal P&C Group L/H/F

S Corp 45.5%

Contingent/Bonus

7.5% 2.3%

Other

Notes

Account Stratification

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

Commercial P&C

• Agencies in this revenue category posted the lowest organic growth rate of all Best Practices revenue groups. At 8.7%, these agencies broke their three-year double-digit growth streak. • Brokers with $10-25M have the highest percentage of gross revenue from investment/miscellaneous income at 2.2%.

 < $5K

26.6% 10.8% 16.7% 13.4% 32.6%

15.5% 15.4% 15.6%

 $5K to $10K  $10K to $25K  $25K to $50K

13.5%

9.7% 9.2%

8.7%

8.3%

 > $50K

Group L/H/F

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

 <50 Lives

43.3% 18.4% 38.4%

 50-100 Lives  >100 Lives

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.

$10-25M

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