2020 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Other 4.5%

LLC 13.6%

C Corp 31.8%

Partner- ship 0.0%

Weighted Average Shareholder Age (WASA)

◼ Northeast ◼ Midwest

22.7% 31.8% 18.2% 22.7%

S Corp 50.0%

◼ West

◼ Southeast ◼ Southwest

4.5%

Revenue Distribution (as a % of Gross Revenue)

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

21.1%

19.2%

Contingent / Bonus/ Overrides 8.3%

17.3%

16.3%

Other 1.3%

7.0%

Group L/H/F 27.5%

6.6%

6.0%

6.0%

Commercial P&C 54.6%

Personal P&C 8.3%

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

• As expected, this revenue category’s concentration in large accounts in both P&C (46.8% of accounts > $50K) and Group L/H/F (58.5% of accounts over 100 lives) is the highest in the BPS . • Agencies in this revenue category have the highest WASA (55.3) in the BPS , an indication that additional investments in perpetuation readiness may be warranted. • Organic growth in all three business segments (CL, PL, and Group L/H/F) were virtually identical

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

14.4%

22.5%

◼ $5K to $10K

◼ From 50 to 100 lives

8.3%

18.5%

◼ $10K to $25K

◼ Over 100 lives

15.6%

58.5%

◼ $25K to $50K

14.9%

◼ > $50K

46.8%

 45