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Data M02 The Market · Agency Benchmarks

Five years of agency growth.

Organic growth, renewal, and new-business rates across the Best Practices revenue tiers, 2018–2022 — the time series that separates a pandemic distortion from a durable trend. The arc: a 2019 surge, a 2021 trough, and a sharp 2022 rebound led by the larger tiers.

A single year's growth figure can mislead — 2019 looks like a boom, 2021 like a stall. The five-year series is the honest read, and it tells a clean story about where durable growth actually lives. This is the revenue-growth slice of the Best Practices trend data; the companion BPS trend reference indexes all seven themes, and the narrative read is the BPS trend analysis.

§ 01 · The organic-growth arcSurge, trough, rebound.

Median organic growth traced the same shape in every tier: a strong 2019, a pandemic-era dip through 2021, and a sharp 2022 recovery. The 2022 rebound was led by the larger tiers — the $5M–$10M band hit 10.5%, up from 3.7% the year before.

Median organic growth2018202020212022
Under $1.25M4.6%7.0%6.0%7.2%
$2.5M–$5M5.3%7.0%2.9%8.3%
$5M–$10M3.3%6.0%3.7%10.5%
Over $25M5.0%4.0%3.7%8.5%

§ 02 · Renewal & new businessRetention at a five-year high.

The 2022 rebound was retention-led. Renewal rates reached 93–98% across the tiers — the highest in the series — reflecting both client loyalty and hard-market pricing power. New-business rates, by contrast, stayed in a stable 10–15% band throughout, suggesting pipelines held steady while the rate environment did the heavy lifting on the top line.

Tier2022 renewal rate2022 new-business rate
Under $1.25M93.1%13.4%
$1.25M–$2.5M94.4%14.8%
$5M–$10M97.9%13.1%
Over $25M95.4%14.3%

§ 03 · The commercial engineWhere the growth concentrates.

Commercial P&C is the consistent growth engine. Where median organic growth ran 4–12%, top-quartile commercial-lines organic growth reached 24–28% in 2022 across every tier — the clearest signal that the best agencies grow disproportionately through commercial lines. Personal-lines organic growth, by contrast, stayed in low single digits and even dipped negative in 2021, and the more volatile lines (bonds, individual life-and-health) swung between double-digit gains and losses year to year.

Key characteristics of the trend
  • The 2022 rebound was real. Median organic growth recovered to 7–10.5%, led by the $5M–$10M and $10M–$25M tiers.
  • Renewal rates hit a five-year high. 93–98% across tiers in 2022 — retention and pricing power combined.
  • New business held steady. A stable 10–15% band throughout, even through the pandemic.
  • Commercial lines lead. Top-quartile commercial organic growth reached 24–28% in 2022 — the engine of outperformance.
  • Personal lines lag. Low-single-digit organic growth, briefly negative in 2021.
  • Scale accelerated in 2022. Larger tiers ($5M+) out-grew smaller ones, widening the gap.
What it means for M&A

The benchmark is the baseline, not the price.

Best Practices benchmarks don't value an agency — they're the operating baseline a valuation is built on. The growth trend says two things a buyer prices: a book that sustained organic growth above 8% with renewal above 95% reads as a premium, durable engine; and a book whose growth is commercial-led reads as more defensible than a personal-lines-heavy one. The diligence discipline is to read a three-year average rather than any single year — 2021 understates, 2019 and 2022 overstate.

The valuation math that turns these growth signals into a multiple is the financial & transactional mechanics reference.

Methodology notes

What BPS measures. The Best Practices Study tracks the operating and financial results of top-performing agencies, segmented by revenue tier. This brief reflects the 2018–2022 revenue-growth series.

Medians and top quartile. Growth figures are segment medians unless a top-quartile figure is named.

Organic growth. Growth excluding acquired revenue — the metric a buyer underwrites for sustainability.

Frequency. The study publishes annually. Milly Books refreshes this brief with each new edition.

The seven trend themes

Explore the BPS trend data.

Open the trend reference →

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