KEY FINDINGS FROM THE UPDATE INCLUDE.

Date10 October 2022
AuthorAcunto, Steve

* Organic growth breaks Best Practices Study record. At 9.2%, organic growth was up 2.5 times from last year's results of 3.7%. Organic growth increased in all six revenue groups in this year's study.

* Profitability remained at all-time highs. At 26.2%, Best Practices agency profitability went up slightly from last year's 25.9% result.

* The Rule of 20 achieved a record high. The Rule of 20, calculated by adding 50% of profitability to organic growth, reached a record high in this year's study of 24 versus 18 in last year's study. The Rule of 20 is the best metric with which to gauge overall agency health.

* Sales velocity gained ground from last year. While a hard market continued to provide much of the organic growth lift, new business improved materially in this year's study. Sales velocity totaled 15.5% versus last year's 13.2%.

* Mergers & acquisitions bolstered growth. In the 2022 study results, 22.3% of Best Practices agencies acquired business, up from 16.4% in last year's study.

* Producer recruitment and development proves challenging. Net unvalidated producer payroll (NUPP), a measure of producer recruitment and development, remained at 1.1% of net revenues compared...

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