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

2026

©2026 Copyright  2026 by the Independent Insurance Agents and 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 2026 Best Practices Study and the Best Practices Gateway website.

2 Study Sponsors 2026

3 2026 Study Sponsors

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

Cross Category Comparison ............................................................................................................10

Glossary...............................................................................................................................................42

4 2026 Table of Contents

5

Introduction & Overview

6 2026 Best Practices Study

Intro & Overview

7

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. 2026 is the second year of the current three-year Study cycle (2025-2027). Last year, 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 served 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. 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 2026 Best Practices Study

The 2026 Best Practices Study is composed of four primary sections:

1) Study Highlights - An overview of the Study results and the latest industry trends.

2) Executive Summaries — Key benchmarks and perspectives are summarized for each of the six revenue categories. 3) 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 2026 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

8

9 2026 Best Practices Study

Cross Category Comparison

Detailed Data for All Revenue Categories

Cross Category Comparison

10

PROFILE

AGENCIES WITH REVENUES OF:

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

Median Revenues

$721,680 $871,418

$1,918,997 $1,856,293

$3,309,754 $3,800,198

$7,166,763 $14,571,515 $43,691,652 $150,979,587

2025 BPS Median Revenues

$6,988,950

$15,824,113

$40,340,744

$137,829,972

Regional Distribution Northeast

11.1% 16.7% 16.7% 50.0%

21.6% 29.7%

12.7% 36.4%

20.4% 29.6%

16.2% 23.0% 12.2% 29.7% 16.2%

16.7% 31.0% 23.8% 11.9% 11.9%

5.6%

Midwest

33.3% 16.7% 38.9%

West

5.4%

5.5%

7.4%

Southeast Southwest

29.7% 13.5%

38.2%

29.6% 13.0%

5.6% 0.0%

7.3% 0.0%

5.6% 0.0%

Outside the U.S.

0.0%

0.0%

2.7%

4.8%

Corporate Structure C Corp

5.6%

10.8% 54.1%

12.7% 63.6%

14.8% 57.4%

27.0% 45.9%

28.6% 45.2%

11.8% 47.1% 11.8% 29.4%

S Corp

61.1%

Partnership

0.0%

0.0%

0.0%

3.7%

2.7%

0.0%

LLC

27.8%

35.1%

23.6%

24.1%

23.0%

23.8%

Sole Proprietorship

5.6% 0.0%

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

1.4% 0.0%

0.0% 2.4%

0.0% 0.0%

Other

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

33.3% 22.2% 33.3% 11.1%

40.5% 35.1%

50.9% 25.5% 10.9% 12.7%

38.9% 20.4% 14.8% 25.9%

28.4% 27.0% 20.3% 24.3%

21.4% 16.7% 26.2% 35.7%

17.6% 29.4% 29.4% 23.5%

8.1%

More than 1,000,000

16.2%

Median Number of Agency Locations

1.0

1.0

2.0

2.0

3.0

5.0

12.5

Number of Shareholders: Low

1.0 1.0 3.0

1.0 2.0 6.0

1.0 2.0 5.0

1.0 3.0

1.0 4.0

1.0

2.0

Median

18.0

82.5

High

11.0

17.0

100.0

346.0

Profile of Largest Shareholder Average Age of Largest Shareholder: Low

35.0 57.0 71.0

36.0 50.0 72.0

35.0 58.0 74.0

34.0 57.0 77.0

37.0 56.0 79.0

34.0 58.0 76.0

45.0 59.5 78.0

Median

High

Average Ownership of Largest SH: Low

50.0%

34.0% 90.0%

31.0% 55.0%

24.5% 51.0%

15.1% 50.0%

4.5%

0.8%

Median

100.0% 100.0%

31.0%

15.0% 83.0%

High

100.0%

100.0%

100.0%

100.0%

100.0%

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

0.0%

0.0%

0.0%

1.9%

2.7%

11.9%

16.7%

0.0%

8.1%

9.1%

11.1%

23.0%

19.0%

5.9%

Cross Category Comparison

11

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

12.0%

45.5%

28.6%

Bainswest

2.7% 8.1% 2.7%

Combined Agents of America First Choice Agents Alliance Insurance Associates of America

10.7%

1.8% 3.6%

5.3% 2.7%

6.8%

4.8%

1.8% 1.8%

4.8%

Insurors Group

2.7%

3.6%

2.7% 6.7% 5.3% 2.7%

ISU Insurance Agency Network

10.5%

10.7%

10.7%

2.3%

Intersure

1.8%

11.4%

4.8%

Keystone Insurers Group

10.8%

17.9%

10.7%

Pacific Interstate

5.3%

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

3.6% 5.4% 7.1% 3.6%

3.6% 3.6% 1.8%

2.7%

SecureRisk

5.4% 8.1% 2.7%

2.3% 4.5%

14.3%

SIAA

15.8%

6.7%

Smart Choice

SouthGroup Insurance The AC

5.3%

1.3%

The Insurance Alliance Network Iroquois Group

6.7%

2.3%

9.5%

15.8% 42.1%

13.5% 29.7%

10.7% 17.9%

3.6%

None of the Above

33.9%

37.3%

20.5%

33.3%

AGENCIES WITH REVENUES OF:

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

WASA

53.8

51.7

53.5

53.7

54.4

53.5

56.7

Shareholder Age Banding: Up to Age 35

7.8%

1.4%

4.9%

4.0%

2.8%

1.7%

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

26.6% 20.8% 46.3%

19.6% 26.4% 42.7%

Age 36 to 45 Age 46 to 55 Over Age 55

11.7% 33.3% 47.2%

32.2% 35.3% 31.1%

26.9% 21.7% 46.6%

25.6% 21.5% 46.7%

Other (ESOP, Outside Investors, etc.)

0.0%

0.0%

0.0%

2.1%

3.5%

9.6%

WASA: Weighted Average Shareholder Age

58.4

57.6

56.7

55.8

55.7

54.4

54.3

54.3

54

53.8

53.8

53.7

53.7

53.5

53.5

53.3

52.4

52.2

51.7

46.7

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS 2025 BPS 2026 BPS

Cross Category Comparison

12

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

2.1%

9.6%

3.5%

31.1%

46.6%

47.2%

46.7%

46.3%

42.7%

35.3%

21.7%

21.5%

20.8%

33.3%

26.4%

26.9%

32.2%

25.6%

26.6%

N/A

11.7%

19.6%

4.0%

2.8%

7.8%

1.7%

1.4%

4.9%

<$1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$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

30.6%

39.7%

49.7%

54.5%

54.6%

52.4%

50.6%

Bonds/Surety

0.4%

0.3%

0.7%

1.5%

2.2%

3.1%

2.8%

Personal Commissions & Fees

61.8%

51.3%

35.4%

25.2%

19.9%

10.9%

10.5%

Contingent/Bonus

4.8%

6.3%

8.4%

8.3%

7.9%

7.3%

6.1%

Total P&C

97.5%

97.6%

94.1%

89.5%

84.6%

73.8%

70.0%

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

0.9% 0.2% 1.0% 0.0% 2.2% 0.2% 0.1%

0.5% 0.1% 1.3% 0.0% 1.9% 0.4% 0.2%

2.5% 0.3% 1.7% 0.0% 4.5% 0.8% 0.6%

6.3% 1.2% 1.2% 0.3% 8.9% 0.9% 0.7%

8.5% 3.0% 1.1% 0.7%

13.9%

11.8%

5.9% 2.4% 1.4%

7.4% 4.5% 1.8%

Bonus/Overrides

Total L&H/Financial

13.2%

23.6%

25.5%

Investment

1.4% 0.7%

1.6% 1.0%

0.7% 3.8%

Miscellaneous Gross Revenues

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Brokerage Comm Expense

0.0%

0.9%

0.5%

0.7%

0.8%

1.2%

1.5%

Net Revenues

100.0%

99.1%

99.5%

99.3%

99.2%

98.8%

98.5%

All Other Group L/H/F Revenue: Life

20.0% 49.0% 28.5%

15.7% 24.2% 21.6%

16.1% 12.9% 44.9%

21.7% 19.0% 41.4%

15.3% 14.2% 33.5%

11.3% 11.8% 28.1% 13.9% 11.4%

12.9% 15.3% 25.1%

Disability

Dental & Vision

Retirement/Pension

0.0% 0.0% 2.5% 0.0% 0.0%

0.0%

0.1% 4.6% 1.1% 1.9%

0.0% 9.1% 3.5% 0.5% 4.8%

3.4% 9.8% 1.2% 4.6%

4.6%

Worksite/Voluntary/Supplement

15.0%

15.8%

Long Term Care

1.8%

1.3% 3.3%

0.3% 3.4%

Employee Benefits TPA

16.7%

All Other

5.2%

18.4%

17.9%

19.0%

22.5%

Total

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

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

Cross Category Comparison

13

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: Median Annualized Commissions Acquired:

5.6%

16.2%

3.6%

11.1%

23.0%

33.3%

72.2%

$875,000

$1,248,750

$5,500,000

N/A

$242,880

$491,722

$442,338

% of Agencies Making Acquisitions in Last Fiscal Year

72.2%

69.2%

43.8%

33.3%

33.3%

23.0%

25.0%

17.2%

19.4%

16.2%

16.4%

11.1%

9.8%

7.4%

6.9%

6.7%

6.3%

5.6%

3.6%

0.0%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS 2025 BPS 2026 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

0.2% 1.4%

0.3% 2.1%

0.2% 2.8%

0.3% 2.9%

0.5% 2.7%

0.3% 1.6% 7.2%

0.2% 0.8% 3.6%

Median

High

10.1%

26.4%

15.4%

19.2%

25.1%

Ten Largest Accounts (% of NR): Low

0.7% 9.5%

2.0% 8.6%

0.8%

2.1%

3.2%

2.4% 8.6%

0.7% 4.5%

Median

11.8% 40.8%

13.7% 54.9%

12.5% 98.3%

High

30.6%

83.5%

34.9%

13.7%

Largest Single Accounts (% of Net Revenues)

26.4%

25.1%

19.2%

15.4%

10.1%

7.2%

3.6%

2.9%

2.8%

2.7%

2.1%

1.6%

1.4%

0.8%

0.5%

0.3%

0.3%

0.3%

0.2%

0.2%

0.2%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Low Median

High

Cross Category Comparison

14

Ten Largest Accounts (% of Net Revenues)

98.3%

83.5%

54.9%

40.8%

34.9%

30.6%

13.7%

13.7%

11.8%

12.5%

9.5%

8.6%

8.6%

4.5%

3.2%

2.4%

2.1%

2.0%

0.8%

0.7%

0.7%

< $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

4.1%

10.4%

16.8%

24.6%

33.4%

44.1%

49.4% 476.7

# of Accounts Total Revenue

0.3

1.6

3.6

11.6

27.5

99.6

$34,198 $99,444

$116,933 $78,735

$361,220 $104,904

$1,221,328 $101,879

$3,201,343 $113,312

$12,180,157

$68,655,752

Revenue per Account

$118,041

$132,939

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

4.5%

7.2%

11.7%

13.1%

14.9%

14.9% 117.7

12.2% 445.0

# of Accounts Total Revenue

0.8

2.9

6.8

18.0

40.7

$28,893 $32,059

$69,049 $31,012

$229,860 $33,853

$608,163 $33,799

$1,401,901

$4,084,627

$15,647,009

Revenue per Account

$34,500

$34,715

$34,689

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

8.3%

14.6%

18.2%

17.0%

18.3% 111.3

16.4% 293.6

13.3% 996.3

# of Accounts Total Revenue

2.6

11.0

21.9

49.1

$33,607 $13,258

$131,772 $13,552

$329,349 $14,955

$747,244 $15,309

$1,739,391

$4,580,740

$15,670,145

Revenue per Account

$15,638

$15,728

$15,735

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

16.7%

17.1%

16.1%

14.7%

12.1% 155.1

8.8% 361.4

7.6%

# of Accounts Total Revenue

9.2

22.9

42.5

77.7

1213.4

$59,000 $6,923

$135,587

$300,052

$547,650

$1,075,779

$2,532,562

$8,540,234

Revenue per Account

$6,575

$7,024

$7,045

$7,003

$7,047

$7,068

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

66.4% 286.4

50.7% 503.1

37.2% 838.0

30.6%

21.2%

15.8%

17.6%

1,254.1

1,807.8

5,488.5

18,223.8

$173,004

$318,016

$624,367

$1,087,247

$1,783,475

$4,738,413

$17,443,576

Revenue per Account

$935

$862

$1,021

$1,040

$1,122

$1,030

$1,101

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

15

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

0.0%

2.6%

10.4%

21.8%

35.3%

52.7%

60.2% 195.4

# of Accounts Total Revenue

0.0

0.1

0.5

3.2

21.2

76.5

$0 $0

$1,491 $26,494

$20,016 $50,707

$178,704 $65,648

$819,549 $3,046,892

$5,654,149

$16,433,037

Revenue per Account

$77,832

$86,677

50-100 Lives % of Book

6.9%

6.1%

11.9%

16.8%

18.5%

18.7%

17.1% 131.2

# of Accounts Total Revenue

0.1

0.1

1.2

7.1

15.8

58.9

$117

$1,256 $10,759

$21,007 $33,828

$126,840 $17,010

$344,344 $32,428

$1,359,825

$3,474,154

Revenue per Account

$1,050

$27,707

$31,273

Under 50 Lives % of Book

93.1%

91.3%

77.7%

61.4%

46.2% 131.8

28.6% 500.6

22.7% 695.6

# of Accounts Total Revenue

7.2

10.5

34.9

76.1

$9,898 $2,414

$15,274 $1,875

$53,772 $2,672

$259,524

$590,888

$2,099,627

$3,649,169

Revenue per Account

$3,568

$7,510

$10,459

$7,802

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 Median Total Specialty Revenue 1

0.0%

13.5%

38.2%

25.9%

40.5%

57.1%

55.6%

N/A N/A

$140,400

$1,385,400

$1,942,562

$5,175,360

$16,059,808

$83,780,824

Median % Net Revenue 1

8.8%

31.9%

26.5%

32.6%

42.2%

42.0%

1 Only for those firms who reported speciality revenues

% of Agencies with Specialty Revenue

57.1%

55.6%

55.6%

56.3%

53.8%

50.0%

41.8%

41.7%

40.5%

39.6%

38.2%

37.9%

33.3%

25.9%

24.1%

22.2%

13.5%

13.3%

10.5%

0.0%

N/A

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2024 BPS 2025 BPS 2026 BPS

Cross Category Comparison

16

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

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 8.1% 0.0% 2.7% 2.7% 2.7% 0.0% 0.0% 0.0% 2.7% 0.0% 0.0% 0.0% 0.0% 2.7%

12.7% 12.7%

5.6% 9.3% 1.9% 1.9% 7.4% 3.7% 3.7% 1.9% 1.9% 3.7% 3.7% 3.7% 0.0% 0.0% 7.4%

10.8% 20.3%

23.8% 42.9%

44.4% 44.4% 11.1% 22.2% 27.8% 33.3% 27.8% 33.3% 11.1% 11.1% 38.9% 33.3% 16.7% 44.4% 22.2% 2.8% 9.4% 1.2% 2.8% 1.4% 3.7% 2.2% 0.8% 1.5% 4.0% 5.1% 0.7% 3.5% 10.4% 15.7%

Construction

Cyber Energy

0.0% 1.8% 9.1% 1.8% 5.5% 5.5% 0.0% 3.6% 5.5%

4.1% 5.4% 9.5% 8.1% 9.5% 8.1% 8.1%

7.1%

19.0% 21.4% 28.6% 19.0% 35.7% 14.3% 11.9% 28.6% 26.2% 14.3% 38.1% 23.8%

Government/Municipality

Healthcare Hospitality

Manufacturing

Management Liability / D&O

Non-profits Real Estate

13.5% 17.6% 12.2%

Schools/Education

12.7%

Technology

1.8% 5.5%

5.4%

Transportation

10.8% 13.5%

Other

16.4%

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

0.0%

21.5% 19.7%

6.3%

1.5%

1.1%

Construction

16.3%

22.6%

15.8%

11.1%

Cyber Energy

0.0%

0.0% 9.3% 2.7% 5.7% 5.3%

0.4%

0.5% 1.3% 3.1% 2.4% 2.2% 7.8% 4.0% 6.8% 8.5% 3.1% 0.7% 1.7%

1.1% 0.4% 2.5% 3.5% 1.3% 6.6% 0.6% 1.8% 7.0% 3.1% 4.3% 2.5% 7.9%

11.0%

27.9%

Government/Municipality

2.2% 1.2% 0.0% 0.0% 0.0% 6.3% 0.0% 0.0% 0.0% 0.0% 2.9%

7.9% 2.0% 2.6% 1.3% 0.8%

Healthcare Hospitality

Manufacturing

16.7%

Management Liability / D&O

0.0% 4.3%

Non-profits Real Estate

34.8% 21.7% 12.4%

13.1%

Schools/Education

2.9% 1.2% 5.9%

Technology

0.0% 0.0%

Transportation

Other

16.1%

12.7%

12.1%

Cross Category Comparison

17

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

95.7% 16.8%

94.6% 12.1%

95.7% 12.7%

94.6% 13.0%

93.2% 11.8% 0.0% 8.4% 7.7% -3.6%

93.3% 13.7%

94.2% 13.2%

New Business

Acquired Business

0.0%

0.0% 8.1% 7.9%

0.0% 8.8% 8.7% 5.7%

0.0% 8.7% 8.4%

0.0% 9.1% 6.2% 0.5%

0.7% 9.1% 7.5% 7.7%

Total Growth

10.2% 10.2%

Organic Growth

Brokerage Commission Expense Net Commissions and Fees Total Growth

N/A

-13.8%

22.9%

10.2%

8.1%

8.8%

8.7%

8.4%

9.1%

9.1%

Organic Growth

10.2%

7.9%

8.7%

8.4%

7.7% 8.7%

6.2% 9.5%

7.5% 9.7%

2025 BPS Organic Growth

9.0%

10.1%

10.4%

11.3%

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

-10.9% -40.0% 12.3% 33.3%

6.5%

6.8% 0.0% -8.6% 0.0%

8.0%

16.6% -20.8%

16.2% 9.1% 4.4% -2.0%

7.7%

44.3% -4.4% 18.1%

20.0% -6.9% 10.7%

10.0% -13.6% 23.7%

7.8%

11.3%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

7.3% 7.3%

9.6% 9.0%

9.4% 9.2%

9.5% 9.5%

9.7% 9.1%

9.4% 8.5%

10.2%

7.6%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

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

Renewal Business

99.2% 21.9%

97.3% 18.5%

100.5%

100.1%

96.3% 17.7%

95.9% 17.9%

95.9% 15.2%

New Business

16.8%

16.0%

Acquired Business

0.0%

0.0%

0.0%

0.0%

0.0%

0.3%

5.7%

Total Growth

17.9% 17.9%

14.5% 13.6% -2.2% 14.5% 13.6% 15.9%

14.1% 13.9% 75.6% 14.1% 13.9% 13.7%

11.8% 11.3%

12.4% 11.3% 23.1% 12.7% 11.1% 15.5% 25.5% -1.2% 29.3% 51.3% 14.6% 13.6%

12.9% 10.8% 24.1% 13.0% 10.9% 12.8% 26.6% 19.1% 15.0% 33.8% 13.1% 12.4%

14.4%

Organic Growth

9.0%

Brokerage Commission Expense Net Commissions and Fees Total Growth

N/A

367.0%

35.4%

17.9% 17.9% 12.4% 21.4% -40.0% 13.0% 84.2% 15.2% 15.2%

11.8% 11.5% 15.1% 25.3% 40.2% 17.7% 85.6% 14.6% 14.2%

13.5% 9.1%

Organic Growth

2025 BPS Organic Growth

12.0%

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

17.5% 44.3%

19.0%

17.6% 27.7%

5.3% 8.5%

8.8%

4.5%

26.4%

18.6%

47.7%

NET REVENUE TOTAL GROWTH NET REVENUE ORGANIC GROWTH

16.5% 13.7%

15.7% 16.1%

13.3% 10.2%

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

18

Net Commissions & Fees Organic Growth

17.9%

13.9%

13.6%

11.5%

11.1%

11.3%

10.9%

10.2%

10.4%

10.1%

9.7%

9.5%

9.1%

8.7%

9.0%

8.7%

8.4%

7.9%

7.7%

7.5%

6.2%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2025 BPS Median 2026 BPS Median 2026 BPS Top Quartile

Net Revenue Organic Growth

16.1%

15.2%

14.2%

13.7%

13.6%

12.4%

10.3%

10.2%

MA

9.6%

9.5%

9.5%

9.2%

9.1%

9.0%

8.7%

8.6%

8.5%

7.6%

7.3%

6.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2025 BPS Median 2026 BPS Median 2026 BPS Top Quartile

Cross Category Comparison

19

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

Total Agency

Commercial Lines

11.3%

12.3%

10.2%

10.1% 10.4%

12.1%

9.5% 9.7%

11.0%

9.0%

8.7%

8.7%

10.0%

8.4%

9.7%

9.4%

7.9%

7.7%

8.9%

7.5%

8.8%

8.3%

7.4%

7.7%

6.2%

7.2%

6.9% 6.6%

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

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

2025 2026

2025 2026

Personal Lines

Group L/H/F

13.3%

13.9%

13.3%

8.3%

7.8% 8.2%

6.5%

6.5%

11.2%

4.3% 5.2%

11.0%

3.6%

10.7% 10.5%

3.4%

10.5%

2.5%

0.7%

9.2%

8.3%

7.8%

6.8% 6.5%

6.7% 7.2%

-2.7%

-16.6%

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

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

2025 2026

2025 2026

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

20

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

93.8% 12.5%

93.5% 11.7%

93.6% 12.1%

94.2% 12.7%

95.6% 15.5%

93.5% 14.2%

97.7% 12.0%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 9.0% 9.0%

0.0% 9.5% 7.1%

0.0%

0.0% 7.0% 7.0%

0.0% 8.7% 6.7%

0.0% 7.0% 6.1%

0.4% 8.8% 6.8%

10.5% 10.5%

Bonds/Surety

Renewal Business

99.2% 10.0%

87.8% 14.7%

47.6% 30.8% 0.0% -9.4% -9.4%

54.7% 67.5%

38.5% 50.0%

63.0% 43.1%

78.3% 21.9%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 2.5% 2.5%

0.0%

0.0%

0.0%

0.0% 3.1% 3.1%

0.0% 8.6% 8.0%

11.0% 11.0%

14.1% 14.1%

10.9% 10.9%

Personal P&C

Renewal Business

99.1% 13.2%

95.4% 10.2%

98.6% 10.0%

98.1%

96.2% 10.2%

97.1% 10.4%

95.6%

New Business

9.0% 0.0% 8.7% 8.3%

9.3% 1.3%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0% 6.5% 6.7%

0.0% 7.4% 7.2%

0.0% 8.4% 6.8%

0.0% 8.6% 6.5%

13.3% 13.3%

14.3%

7.8%

Group Medical

Renewal Business

86.7%

91.4%

88.2% 2.8% 0.0% -3.8% -3.8%

94.9%

95.0% 10.0%

99.3% 10.2%

91.6% 11.3%

New Business

5.5% 0.0% 0.0% 0.0%

3.8% 0.0% 1.9% 1.9%

9.6% 0.0% 4.9% 5.3%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 7.0% 6.4%

0.0%

0.0% 5.7% 3.4%

10.2% 10.2%

All Other Group

Renewal Business

81.3%

103.4%

98.5%

100.0%

94.9% 10.7%

97.6% 11.8%

97.4% 11.6%

New Business

2.5% 0.0%

3.4% 0.0% 1.2% 1.2%

8.3% 0.0% 8.4% 8.4%

3.8% 0.0% 6.6% 8.3%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 4.5% 4.2%

0.0% 8.6% 8.3%

0.0%

-16.2% -16.2%

10.6% 10.6%

Individual L/H/F

Renewal Business

16.4% 47.5% 0.0% -4.9% -4.9%

71.9% 18.0%

56.7% 46.0% 0.0% -2.4% -2.4%

68.7% 31.1%

56.8% 37.7% 0.0% -5.2% -5.2%

51.5% 20.7%

66.8% 38.7%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 0.0% 0.0%

0.0% 2.3% 4.5%

0.0% 1.6% 1.6%

0.0%

10.7%

6.6%

Cross Category Comparison

21

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

103.1%

97.4% 24.7%

103.0%

100.9%

99.3% 14.2%

95.5% 16.5%

97.0% 14.7%

New Business

24.9%

17.3%

16.2%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0%

0.0%

0.0%

0.0%

0.1%

3.1%

18.3% 18.3%

17.0% 16.6%

17.9% 17.9%

12.8% 12.3%

12.0% 10.9%

11.8% 11.0%

11.4%

8.8%

Bonds/Surety

Renewal Business

100.0% 137.4%

106.3%

89.5% 82.5%

88.8%

74.1%

84.7% 81.6%

87.1% 72.9%

New Business

40.2%

110.8%

101.7%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 5.7% 5.7%

0.0%

0.0% 7.4% 7.4%

0.0%

0.0%

0.0%

0.2%

36.7% 36.7%

33.3% 33.3%

24.9% 24.9%

13.1% 13.1%

13.1% 13.0%

Personal P&C

Renewal Business

105.9%

100.0%

102.4%

103.0%

100.4%

102.1%

98.4% 13.3% 13.7% 20.1% 12.9%

New Business

22.3%

16.6%

14.9%

13.8%

17.5%

13.8%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

17.8% 17.8%

14.7% 14.0%

10.6% 10.6%

13.9% 12.7%

14.2% 13.3%

12.7% 11.8%

Group Medical

Renewal Business

97.0% 41.1%

100.0%

94.6% 10.5%

106.3%

102.9%

104.7%

94.2% 16.4%

New Business

7.3% 0.0%

17.6%

15.2%

13.3%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 2.4% 2.4%

0.0%

0.0%

0.0%

0.0%

4.1%

16.5% 16.5%

10.4% 10.4%

15.0% 14.5%

13.7% 12.6%

17.3% 16.8%

12.4%

6.5%

All Other Group

Renewal Business

93.7% 3.8% 0.0% -5.1% -5.1%

109.1%

104.0%

118.2%

106.3%

104.7%

108.4%

New Business

8.6% 0.0% 6.8% 6.8%

20.8%

15.4%

18.5%

18.6%

17.7%

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0%

0.0%

0.0%

0.0%

0.0%

18.2% 18.2%

20.0% 20.1%

21.1% 19.6%

15.8% 14.8%

22.9% 22.9%

Individual L/H/F

Renewal Business

53.4% 87.5%

85.8% 95.8%

74.5% 70.5%

81.9% 62.3%

84.0% 46.8%

86.0% 52.9%

85.2% 49.2%

New Business

Acquired Business TOTAL GROWTH ORGANIC GROWTH

0.0% 8.7% 8.7%

0.0% 9.8% 9.8%

0.0% 3.1% 3.1%

0.0%

0.0% 8.3% 7.2%

0.0%

0.9%

13.2% 14.6%

19.3% 19.3%

16.7% 15.6%

Cross Category Comparison

22

SALES VELOCITY

AGENCIES WITH REVENUES OF:

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

Sales Velocity: Median

16.6% 18.5%

12.1% 18.5%

12.8% 16.9%

13.0% 15.6%

11.8% 17.6%

13.7% 17.8%

13.5% 15.0%

Top Quartile

Age Banding of Sales Velocity: Up to age 35

2.5% 3.9% 7.6% 1.4%

4.5% 5.6% 3.2% 2.1%

3.6% 4.7% 2.7% 3.2%

2.6% 4.2% 3.5% 3.5%

2.5% 5.4% 3.1% 3.0%

2.5% 5.1% 3.5% 4.4%

3.7% 4.4% 3.2% 2.9%

Age 36-45 Age 46-55 Over age 55

Sales Velocity

18.5%

18.5%

17.8%

17.6%

16.9%

16.6%

15.6%

15.0%

14.3%

14.1%

13.7%

14.0%

13.5%

13.3%

13.0%

13.0%

12.8%

12.1%

11.8%

11.6%

11.9%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2025 BPS Median 2026 BPS Median 2026 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

1.4%

3.2% 2.1%

4.4%

2.9%

3.2%

3.0%

3.5%

7.6%

3.2%

2.7%

3.1%

3.5%

3.5%

5.6%

4.7%

4.4%

5.4%

5.1%

4.2%

3.9%

4.5%

3.7%

3.6%

2.6%

2.5%

2.5%

2.5%

<$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

23

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

48.2%

50.7%

47.7%

33.3%

40.9%

42.0%

46.2%

2.8%

3.6%

2.4%

"Non-employees" (1099 Prods/outsourced)

3.5%

4.6%

2.9%

3.1%

Total Payroll Benefits Payroll Taxes

36.8%

45.5%

44.8%

49.2%

50.9%

54.2%

50.1%

3.1% 1.5% 3.1% 0.3% 8.0% 1.1% 0.3% 1.1% 2.5% 3.3% 0.2% 3.3% 0.3% 0.1% 0.3% 0.7% 0.3% 1.1% 0.9% 0.1% 1.0% 0.3% 0.5% 0.5% 1.7% 0.2% 0.9% 1.2% 4.7% 78.6% 21.4% 25.1% 12.4% 59.0%

3.0% 1.6% 3.4% 0.2% 8.2% 1.5% 0.4% 1.0% 2.9% 2.8% 0.2% 3.2% 0.3% 0.1% 0.3% 0.6% 0.3% 0.9% 0.8% 0.1% 1.3% 0.3% 0.4% 0.9% 2.1% 0.1% 1.6% 0.8% 7.3% 84.1% 15.9% 23.2% 11.5% 62.5%

2.8% 1.3% 3.4% 0.2% 7.8% 1.4% 0.3% 2.0% 3.7% 3.0% 0.2% 3.0% 0.3% 0.1% 0.2% 0.4% 0.2% 0.8% 0.9% 0.1% 1.2% 0.2% 0.8% 0.7% 2.3% 0.0% 5.8% 1.2%

3.2% 0.7% 1.8% 0.3% 6.2% 1.0% 1.0% 2.1% 4.2% 4.2% 0.4% 3.4% 0.8% 0.1% 0.7% 1.1% 0.5% 1.6% 1.3% 0.0% 0.3% 0.4% 0.8% 1.3% 0.9% 0.1% 1.5% 0.4% 4.6% 67.3% 28.8% 30.7% 15.5% 42.9%

3.3% 1.4% 2.4% 0.3% 7.3% 1.3% 0.5% 1.4% 3.3% 4.0% 0.2% 3.4% 0.5% 0.1% 0.6% 1.0% 0.4% 1.5% 1.4% 0.0% 0.4% 0.3% 0.5% 1.6% 1.2% 0.1% 2.1% 0.2% 7.2% 77.7% 21.2% 26.9% 14.4% 52.8%

3.3% 1.8% 2.9% 0.1% 8.1% 1.0% 0.5% 1.3% 2.8% 3.5% 0.3% 3.3% 0.4% 0.1% 0.6% 1.0% 0.3% 1.3% 1.0% 0.1% 0.3% 0.3% 0.5% 0.6% 1.2% 0.2% 0.7% 0.3% 3.6% 72.2% 26.7% 29.9% 12.9% 52.9%

3.1% 1.5% 3.2% 0.2% 8.0% 1.1% 0.4% 1.0% 2.5% 3.2% 0.3% 3.2% 0.3% 0.1% 0.5% 0.8% 0.3% 1.1% 0.9% 0.2% 0.6% 0.3% 0.4% 0.5% 1.2% 0.2% 0.5% 0.4% 2.9% 74.6% 24.9% 27.0% 12.0% 57.3%

Retirement Insurance

Other

Total Benefits

57.8%

Total Compensation

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

11.6%

Amortization of Intangibles

Officer Life

Interest

Other

16.1% 89.2% 10.8% 26.9%

Total Administrative

TOTAL EXPENSES (PRO FORMA)

PRO FORMA PRE-TAX PROFIT/LOSS

PRO FORMA EBITDA 2

1 For firms that own their building and reported a much lower occupancy expense 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

24

PROFITABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

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

21.0% 21.4% 23.9% 25.1%

13.6% 15.9% 20.0% 23.2%

8.4%

Pre-Tax Profit

27.2% 28.8% 28.3% 30.7%

20.8% 21.2% 26.4% 26.9%

25.7% 26.7% 28.3% 29.9%

23.3% 24.9% 24.6% 27.0%

Pro Forma Pre-Tax Profit

10.8%

EBITDA

24.0% 26.9%

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

29.3% 28.2% 31.2% 32.3%

19.9% 20.4% 26.6% 28.0%

21.8% 20.7% 30.4% 31.0%

Pre-Tax Profit

40.7% 43.4% 39.8% 42.5%

31.4% 31.4% 36.5% 36.5%

33.2% 34.6% 35.4% 36.0%

34.4% 36.1% 36.2% 37.0%

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

40.7%

34.4%

33.2%

31.4%

29.3%

27.2%

25.7%

23.3%

21.8%

21.0%

20.8%

19.9%

13.6%

8.4%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma Pre-Tax Profit

43.4%

36.1%

34.6%

31.4%

28.8%

28.2%

26.7%

24.9%

21.4%

21.2%

20.7%

20.4%

15.9%

10.8%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Cross Category Comparison

25

EBITDA

39.8%

36.5%

36.2%

35.4%

31.2%

30.4%

28.3%

28.3%

26.6%

26.4%

24.6%

24.0%

23.9%

20.0%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Average

Top Quartile

Pro Forma EBITDA

42.5%

37.0%

36.5%

36.0%

32.3%

31.0%

30.7%

29.9%

28.0%

27.0%

26.9%

26.9%

25.1%

23.2%

< $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

7.2

-6.0 22.8 44.0 32.2

-1.8 26.1 47.5 30.1

0.6

-3.3 19.9 41.3 27.9

4.5

11.4 20.4 44.2 22.7

Median

25.6 49.1 34.1

22.0 45.2 28.6

19.3 33.1 23.1

High

Top Quartile

Rule of 20

34.1

32.2

30.1

29.5

28.6

28.5

27.9

26.4

26.1

25.6

24.9

23.1

22.8

22.7

22.0

21.7

20.9

20.4

19.9

19.3

19

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

2025 BPS Median 2026 BPS Median 2026 BPS Top Quartile

Cross Category Comparison

26

FINANCIAL STABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

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

2.0:1 2.2:1

1.6:1 2.0:1

1.1:1 1.5%

1.2:1 1.5:1 6.9%

Current Ratio

1.0:1

1.2:1 2.7:1

2.3:1 2.8:1

Trust Ratio

N/A

17.2% 49.8%

13.5% 59.3%

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

7.5% 0.0%

11.1% 43.1%

14.6% 57.8%

12.0% 39.9%

55.0%

32.4% 10.0% 10.0% 90.0%

0.0%

0.2% 8.6%

2.4%

5.0%

2.8% 4.9%

5.2% 6.7%

15.3%

10.3%

14.7%

5.0%

35.0% 65.0%

25.7% 74.4%

9.0%

12.0% 88.0%

15.0% 85.0%

91.0%

15.3%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

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

2.5:1 3.1:1

2.1:1 3.0:1

1.6:1 2.4:1

1.6:1 1.9:1

Current Ratio

2.3:1

2.4:1 4.2:1

3.4:1 3.5:1

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

24.8%

25.7% 20.4%

26.8% 28.9%

21.4% 15.5%

27.9% 17.3%

38.4% 39.5%

15.0% 40.6%

0.0%

16.2% 10.0%

0.0% 6.2%

0.0% 1.9%

0.0% 6.0%

1.0% 4.2%

0.8% 3.4%

1.5% 3.5%

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

51.6% 12.4%

63.5%

41.7% 25.0% 12.5% 16.7%

36.1% 16.7% 11.1%

75.0%

57.9% 12.1%

49.5% 11.0%

Industry Lender

0.0% 2.0%

0.0% 6.2%

Private Equity Lender

0.0%

4.0%

2.1%

17.2% 16.7%

18.6% 11.6%

Shareholder

5.6%

15.2%

16.4% 13.5%

30.7%

Other

30.6%

7.8%

4.8%

4.2%

43.2%

57.1%

66.7%

% of Firms that have Identified Debt

50.0%

45.9%

38.2%

40.7%

Of those firms that have debt: Average Total Debt

$51,274

$584,943

$231,000

$718,198

$3,896,685

$7,944,882

$76,162,476

Total Leverage 1

0.3x 5.5%

1.4x 6.0%

0.4x 5.9%

0.4x 5.1%

1.1x 5.7%

1.0x 5.7%

2.0x 6.3%

Average Effective Interest Rate Average Term (Years to Maturity)

5.0

8.7

5.0

6.7

8.2

7.7

6.1

1 Total Debt/Pro Forma EBITDA

Cross Category Comparison

27

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

0.3

1.0

2.0

13.0 1.0% 3.0%

0.0% 3.4%

0.0% 3.4%

0.0% 3.3%

0.5% 3.2%

0.4% 3.3%

0.4% 3.2%

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

AMS360

10.5%

18.9% 45.9% 13.5%

33.9% 48.2%

36.4% 49.1%

18.9% 78.4%

13.6% 70.5%

20.0% 75.0%

EPIC

0.0%

EZLynx Sagitta

15.8%

3.6%

11.4%

5.0%

HawkSoft Nexsure

15.8%

8.1%

3.6%

1.8% 3.6% 1.8% 7.3%

1.4%

Xanatek - IMS

1.8% 8.9%

Other

57.9%

13.5%

1.4%

4.5%

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?

52.6% 21.1% 47.4%

48.6% 45.9% 56.8%

39.3% 30.4% 42.9%

46.4% 44.6% 50.0% 23.1% 15.4% 26.9% 15.4%

44.0% 40.0% 56.0% 18.2% 21.2% 15.2% 18.2%

61.4% 72.7% 75.0%

90.5% 90.5% 95.7%

Does Agency Invest in AI?

CRM is Salesforce CRM is HubSpot CRM is AgencyZoom

10.0%

5.6%

4.5%

48.1% 29.6%

47.4% 10.5%

60.0%

44.4%

59.1%

CRM is Pipedrive

10.5%

CRM is Microsoft Dynamics CRM is Other

30.0%

50.0%

36.4%

19.2%

27.3%

14.8%

15.8%

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

95.7%

90.5%

90.5%

75.0%

72.7%

61.4%

56.8%

56.0%

52.6%

50.0%

48.6%

47.4%

46.4%

45.9%

44.6%

44.0%

42.9%

40.0%

39.3%

30.4%

21.1%

< $1.25M

$1.25-2.5M

$2.5-5M

$5-10M

$10-25M

$25-100M

>$100M

Cross Category Comparison

28