2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 4.2%

Other 4.2%

LLC 20.8%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

11.1% 29.6%

S Corp 70.8%

◼ West

7.4%

◼ Southeast ◼ Southwest

40.7% 11.1%

Revenue Distribution (as a % of Gross Revenue)

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

34.9%

Contingent / Bonus/ Overrides 6.2%

Other 0.8%

23.6%

Group L/H/F 4.5%

20.2%

Commercial P&C 38.5%

10.3%

10.3%

7.4%

7.1%

4.7%

Personal P&C 50.0%

Total Agency

Commercial P&C

Personal P&C

Group L/H/F

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 .

Account Stratification

Notes

The smallest agency revenue category continues to struggle to make significant headway with large Group L/H/F accounts. 88% of the Group L/H/F book for agencies under $1.25 million was represented by accounts under 50 lives. On a positive note, agencies under $1.25 million achieved the fastest growth rate (10.3%) in its Group L/H/F book across all Best Practices revenue categories.

•

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

57.0%

88.0%

◼ $5K to $10K

◼ From 50 to 100 lives

14.7%

6.0%

◼ $10K to $25K

◼ Over 100 lives

14.2%

6.0%

•

◼ $25K to $50K

6.8%

◼ > $50K

7.2%

 25