2001 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

CSR Summary

Average Book Serviced/CSR (Commissions)

Average Pay as % of Book Serviced

100000 150000 200000 250000 300000 350000 400000 450000 500000

30

20

10

0 50000

0

Commercial P&C

Group L&H Personal P&C Multi-Line

Commercial P&C Group L&H

Personal P&C

Multi-Line

Average Top 25%

FINANCIAL STABILITY

A. Current Ratio

A current ratio greater than 1:1 indicates that cash and assets with short-term maturities are sufficient to meet a firm's short-term obligations.

Average

Top 25%

Liquidity/Current Ratio

1.14:1

1.51:1

B. Tangible Net Worth

The tangible net worth is an important measure as it represents the net value of the corporation if it were liquidated. A low or negative tangible net worth impacts a firm's ability to invest in new opportunities, develop new products, hire new employees, make other capital expenditures and handle stockholder redemption obligations.

Average

Top 25%

Tangible Net Worth (as % of Net Rev)

1.9%

17.3%

C. Receivables

1. Receivables/Payables Ratio

This factor measures the collection practices of an agency, with a lower ratio representing more timely collections. (Calculated by dividing total receivables by total payables at a given point in time.) Average Top 25%

Receivables/Payables Ratio

50.1%

21.2%

2. Aged Receivables

Average

Top 25%

Over 60 Over 90

14.1%

4.0% 1.3%

7.3%

120