Revenues (Tables)

3 Months Ended

Mar. 31, 2021

The following tables present the revenues disaggregated by revenue source:

	Three months ended March 31, 2021
(in thousands)	Retail		National Programs		Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	357,459	$	110,745	$	71,344	$	—	$	7		$	539,555
Fees ⁽²⁾		87,051		34,329		16,062		46,971		(424	)		183,989
Incentive commissions ⁽³⁾		57,347		788		1,150		—		—			59,285
Profit-sharing contingent commissions ⁽⁴⁾		15,735		8,316		1,899		—		—			25,950
Guaranteed supplemental commissions ⁽⁵⁾		4,615		394		249		—		—			5,258
Investment income⁽⁶⁾		18		152		41		3		36			250
Other ⁽⁷⁾		690		169		130		—		—			989
Total Revenues	$	522,915	$	154,893	$	90,875	$	46,974	$	(381	)	$	815,276

	Three months ended March 31, 2020
(in thousands)	Retail		National Programs			Wholesale Brokerage		Services		Other ⁽⁸⁾			Total
Base commissions ⁽¹⁾	$	315,888	$	88,582		$	55,563	$	—	$	—		$	460,033
Fees ⁽²⁾		57,483		34,659			15,641		44,452		(322	)		151,913
Incentive commissions ⁽³⁾		52,802		197			3,759		—		1			56,759
Profit-sharing contingent commissions ⁽⁴⁾		16,095		5,711			2,136		—		—			23,942
Guaranteed supplemental commissions ⁽⁵⁾		4,432		(1,013	)		437		—		—			3,856
Investment income⁽⁶⁾		83		263			50		—		765			1,161
Other ⁽⁷⁾		706		13			112		—		—			831
Total Revenues	$	447,489	$	128,412		$	77,698	$	44,452	$	444		$	698,495

(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 revenues consist 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 March 31, 2021 and December 31, 2020 were as follows:

(in thousands)	March 31, 2021		December 31, 2020
Contract assets	$	403,203	$	308,755
Contract liabilities	$	78,392	$	80,997