Big ‘I’ and Reagan Consulting Release 2025 Best Practices Study

• By: AnneMarie McPherson Spears
• August 12, 2025

Best Practices agencies continue excellent organic growth and profitability, according to the 2025 Best Practices Study by the Big “I” and Reagan Consulting.

The Best Practices Study is the first of a new three-year cycle, examining the firms that newly qualified as a 2025 Best Practices agency. The annual study, conducted jointly in a longstanding partnership between the Big “I” and Reagan Consulting for the past 32 years, provides critical performance benchmarks across agency revenue categories ranging from under $1.25 million to over $100 million.

This year’s study includes two new revenue categories to replace the largest revenue group of over $25 million from previous years. The study now categorizes results for agencies with $25-100 million and for agencies with over $100 million.

“Despite some market headwinds, Best Practices agencies delivered another year of excellent results,” says Charles Symington, Big “I” president & CEO. “We extend our congratulations to these cream-of-the-crop agencies for their outstanding operational success. They are the best examples of the resiliency and strength of the independent agency channel.”

The Best Practices Study provides benchmarks and insights for all independent insurance agencies to strengthen their foundations for the challenges the market may bring in the coming years. “All agencies can look to these results and learn from the best,” Symington says.  

The Best Practices Study analyzes takeaways from nominated Best Practices firms throughout the nation that have been recognized for outstanding management and financial achievement in categories such as income and expense distribution; revenue and profitability growth; staff compensation and productivity; technology expenses; and property & casualty and life-health carrier representation.  

“The new Best Practices class continues the growth the independent agency channel has seen since 2020,” says Tom Doran, a partner with Reagan Consulting. “The new revenue category adjustment was made to account for the remarkable growth that has taken place at the top end of the market. This year shows strong organic growth results and profitability, with our metrics indicating the industry has never been healthier.”

Key findings from the update include:

• Organic growth remains at a record high. At 10.7%, organic growth levels were driven by strong organic growth in personal property & casualty and group benefits. However, commercial p&c revenue growth slowed in all revenue categories except the $1.25-$2.5 million group due to a moderating rate environment. 
• Profitability maintains historically high levels. At 26.1%, EBITDA (earnings before interest, taxes, depreciation and amortization) margins fell just short of last year’s record results of 26.3%.
• The Rule of 20 results hit another all-time high. The Rule of 20, calculated by adding organic growth to 50% of pro forma EBITDA, continued to set records with an impressive 25.1. The Rule of 20 is the best metric to gauge overall agency health. 
• Sales velocity remains healthy. Sales velocity in all revenue categories exceeded the critical 12%-13% threshold to be considered a healthy sales culture.
• Producer recruitment and development remains healthy. Net unvalidated producer payroll (NUPP), a measure of successful producer recruitment and development, held steady at 2.0%, compared to 1.9% in 2024. A healthy NUPP investment is 1.5%-2.0%, indicating that Best Practices agencies are appropriately reinvesting in future growth engines.
• Revenue per employee rose. Revenue per employee hit $228,321. However, this increase in productivity did not lead to record profitability due to a significant increase in average compensation per employee.

The annual Best Practices Study began in 1993 as a joint initiative between the Big “I” and Reagan Consulting and studies leading agencies and brokers in the country to help independent agents build the value of their agencies.

For more information on the Best Practices program or to purchase a copy of the 2025 Best Practices Study visit the Big “I” Best Practices webpage.

AnneMarie McPherson Spears is IA news editor.