Revenues (Tables)

6 Months Ended

Jun. 30, 2021

The following tables present the revenues disaggregated by revenue source:

	Three months ended June 30, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	263,474	$	125,310	$	84,027	$	—	$	1		$	472,812
Fees ⁽²⁾		110,348		41,221		17,574		44,887		(500	)		213,530
Incentive commissions ⁽³⁾		15,412		210		451		—		—			16,073
Profit-sharing contingent commissions ⁽⁴⁾		8,408		9,017		2,169		—		—			19,594
Guaranteed supplemental commissions ⁽⁵⁾		3,315		373		222		—		—			3,910
Investment income⁽⁶⁾		17		134		44		—		34			229
Other income, net ⁽⁷⁾		125		9		104		—		966			1,204
Total Revenues	$	401,099	$	176,274	$	104,591	$	44,887	$	501		$	727,352

	Six months ended June 30, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	620,932	$	236,055	$	155,371	$	—	$	9		$	1,012,367
Fees ⁽²⁾		197,399		75,550		33,636		91,858		(925	)		397,518
Incentive commissions ⁽³⁾		72,760		998		1,601		—		—			75,359
Profit-sharing contingent commissions ⁽⁴⁾		24,143		17,333		4,068		—		—			45,544
Guaranteed supplemental commissions ⁽⁵⁾		7,930		767		471		—		—			9,168
Investment income⁽⁶⁾		35		286		85		3		70			479
Other income, net ⁽⁷⁾		815		178		234		—		966			2,193
Total Revenues	$	924,014	$	331,167	$	195,466	$	91,861	$	120		$	1,542,628

(1)

Base commissions generally represent a percentage of the premium paid by an insured and are affected by fluctuations in both premium rate levels charged by insurance companies and the insureds’ underlying “insurable exposure units,” which are units that insurance companies use to measure or express insurance exposed to risk (such as property values, or sales and payroll levels) to determine what premium to charge the insured. Insurance companies establish these premium rates based upon many factors, including loss experience, risk profile and reinsurance rates paid by such insurance companies, none of which we control.

(2)	Fee revenues relate to fees for services other than securing coverage for our customers, fees negotiated in lieu of commissions, and F&I products and services.

(3)	Incentive commissions include additional commissions over base commissions received from insurance carriers based on predetermined production levels mutually agreed upon by both parties.

(4)	Profit-sharing contingent commissions are based primarily on underwriting results, but may also reflect considerations for volume, growth and/or retention.

(5)	Guaranteed supplemental commissions represent guaranteed fixed-base agreements in lieu of profit-sharing contingent commissions.

(6)	Investment income consists primarily of interest on cash and investments.

(7)	Other income consists primarily of legal settlements and other miscellaneous income.

(8)	Fees within other reflects the elimination of intercompany revenues.

Schedule of Balances of Contract Assets and Contract Liabilities Arising from Contracts with Customers

The balances of contract assets and contract liabilities arising from contracts with customers as of June 30, 2021 and December 31, 2020 were as follows:

(in thousands)	June 30, 2021		December 31, 2020
Contract assets	$	365,084	$	308,755
Contract liabilities	$	82,447	$	80,997