2008 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Financial Stability

Top 25%

Average

Balance Sheet Current Ratio

1.38:1

1.91:1 22.8%

Tangible Net Worth (% of Net Revenue)

6.8%

Receivables/Payable Ratio

55.2%

9.8%

Aged Receivables

% Receivables Aged Past 60 Days % Receivables Aged Past 90 Days

12.4%

2.0% 2.4%

7.5%

Accounts Receivable

Average

+25% Profit

+25% Growth

Agency Billed vs. Direct Billed by Carrier % of P&C Revenues that are Agency Billed % of P&C Revenues that are Direct Billed

33.7% 63.3%

28.9% 60.0%

24.8% 75.2%

51 2008 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Financial Stability