2021 Best Practices Study

Executive Summary

Agencies between $5.0 Million and $10.0 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $7,289,517

C Corp 14.3%

Other 2.4%

LLC 26.2%

Weighted Average Shareholder Age (WASA) 51.0

Partner- ship 9.5%

◼ Northeast ◼ Midwest

20.9% 16.3% 37.2% 14.0% 11.6%

S Corp 47.6%

◼ West

◼ Southeast ◼ Southwest

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

20.4%

Contingent / Bonus/ Overrides 9.2%

15.4%

14.4%

13.8%

Other 2.5%

5.7%

Group L/H/F 11.4%

3.7%

1.8%

Commercial P&C 56.2%

-0.7%

Personal P&C 20.7%

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 51.0, this revenue category boasted the lowest WASA in this year’s Best Practices Study . • Group L/H/F growth was negative for this revenue category (-0.7%), an indication that account retention and new business efforts may warrant a closer look. • This is the smallest revenue group for which 50%+ of Group L/H/F business was outside the Under 50 Lives category.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

30.4%

50.0%

◼ $5K to $10K

◼ From 50 to 100 lives

14.5%

21.4%

◼ $10K to $25K

◼ Over 100 lives

20.1%

28.6%

◼ $25K to $50K

12.9%

◼ > $50K

22.0%

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