2021 Best Practices Study

Executive Summary

Agencies over $25.0 Million in Revenue

Profile

Regional Distribution

Corporate Structure

Average Revenues $62,554,525

Other 5.0%

C Corp 22.5%

LLC 15.0%

Weighted Average Shareholder Age (WASA) 55.7

◼ Northeast ◼ Midwest

22.5% 32.5% 20.0%

S Corp 57.5%

◼ West

◼ Southeast ◼ Southwest

5.0%

20.0%

Revenue and Growth

Revenue Distribution (as a % of Gross Revenue)

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

20.3%

Contingent / Bonus/ Overrides 8.1%

16.0%

Other 1.2%

12.7%

9.0%

Group L/H/F 26.4%

4.5%

3.9%

3.7%

3.2%

Commercial P&C 56.5%

Personal P&C 7.8%

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

• This group’s WASA result (55.7) is the highest of all the revenue categories in this year’s Study . • Mega-business reigns at this level. This group posted the largest business concentration in the biggest account size categories among all Best Practices revenue groups.

Commercial P&C

Group L/H/F

◼ < $5K

◼ Under 50 lives

13.9%

23.9%

◼ $5K to $10K

◼ From 50 to 100 lives

8.0%

16.9%

◼ $10K to $25K

◼ Over 100 lives

14.9%

58.7%

◼ $25K to $50K

14.3%

◼ > $50K

48.8%

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