2017 Best Practices Study

Regional Distribution

Corporate Structure

Average Revenues

Sole Prop. 0.0%

LLC 12.1%

C Corp 27.3%

Weighted Average Shareholder Age (WASA)

 Northeast  Midwest

15.2% 27.3% 12.1% 36.4%

 West

S Corp 60.6%

 Southeast  Southwest

9.1%

Revenue Distribution (as a % of Gross Revenue)

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

20.4%

Contingent / Bonus/ Overrides 9.5%

15.7%

14.9%

Other 0.7%

8.1%

3.8%

3.7%

2.8%

Group L/H/F 10.0%

Commercial P&C 47.1%

-6.2%

Personal P&C 32.6%

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

• Organic growth for this revenue group, hurt by a declining Group L/H/F revenue stream, dropped to 2.8% this year from 6.5% last year. • Agencies in this group also lowered the age of their shareholder base in the last year, with WASA dropping from 53.2 to 52.5.

Commercial P&C

Group L&H

 < $5K

 Under 50 lives

47.0%

78.9%

 $5K to $10K

 From 50 to 100 lives

20.4%

14.1%

 $10K to $25K

 Over 100 lives

16.4%

7.0%

 $25K to $50K

10.3%

 > $50K

5.9%