2021 Best Practices Study

Executive Summary

Agencies between $2.5 Million and $5.0 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $3,687,292

C Corp 21.4%

LLC 21.4%

Weighted Average Shareholder Age (WASA) 54.8

S Corp 57.1%

◼ Northeast ◼ Midwest

15.2% 19.6% 34.8% 19.6% 10.9%

◼ West

◼ Southeast ◼ Southwest

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

16.4%

16.3%

15.8%

15.0%

Contingent / Bonus/ Overrides 9.6%

Other 2.4%

Group L/H/F 5.5%

2.9%

2.5%

Commercial P&C 57.0%

-0.7%

-1.1%

Personal P&C 25.5%

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

•

The $2.5M-$5.0M revenue category has the second highest WASA in this year’s Study (54.8). • Organic growth was tough in 2020 for this group (2.9%). Its overall, CL and PL growth results lagged all other revenue categories in this year’s Study .

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

37.7%

75.2%

◼ $5K to $10K

◼ From 50 to 100 lives

15.4%

8.7%

◼ $10K to $25K

◼ Over 100 lives

17.2%

16.1%

◼ $25K to $50K

13.9%

◼ > $50K

15.8%

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