2021 Best Practices Study

Executive Summary

Agencies under $1.25 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $908,048

C Corp 15.8%

LLC 21.1%

Weighted Average Shareholder Age (WASA) 52.0

◼ Northeast ◼ Midwest

11.1% 29.6%

S Corp 63.2%

◼ West

7.4%

◼ Southeast ◼ Southwest

40.7% 11.1%

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

Contingent/ Bonus/ Overrides 5.6%

29.3%

Other 1.2%

Group L/H/F 4.3%

21.2%

18.8%

18.1%

Commercial P&C 39.4%

9.7%

6.0%

4.4%

3.6%

Personal P&C 49.5%

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

•

At only 4.3% of gross revenue, Group L/H/F business continues to be a relatively untapped revenue source for this Best Practices revenue category. • Agencies under $1.25M in revenue posted the highest organic growth rate of all Best Practices revenue groups in this year’s Study (6.0%).

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

58.7%

90.5%

◼ $5K to $10K

◼ From 50 to 100 lives

14.3%

9.5%

◼ $10K to $25K

◼ Over 100 lives

15.9%

0.0%

◼ $25K to $50K

7.7%

◼ > $50K

3.4%

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