2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

C Corp 11.9%

LLC 26.2%

Weighted Average Shareholder Age (WASA)

Partner- ship 9.5%

◼ Northeast ◼ Midwest

18.6% 16.3% 14.0% 34.9% 16.3%

S Corp 52.4%

◼ West

◼ Southeast ◼ Southwest

Revenue Distribution (as a % of Gross Revenue)

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

27.6%

22.7%

Contingent / Bonus/ Overrides 9.1%

Other 0.9%

18.1%

17.7%

Group L/H/F 13.6%

9.3%

6.2%

4.4%

2.0%

Commercial P&C 56.8%

Personal P&C 19.6%

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

• Agencies in the $5.0 – 10.0 million revenue category had the highest commercial lines organic growth rate of all revenue categories in the Study at 9.3%. • Agencies in this revenue category also had the lowest personal lines organic growth rate (2.0%) across all revenue categories in this year’s Best Practices Study.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

29.5%

49.2%

◼ $5K to $10K

◼ From 50 to 100 lives

13.5%

20.1%

◼ $10K to $25K

◼ Over 100 lives

19.3%

30.7%

◼ $25K to $50K

14.4%

◼ > $50K

23.2%

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