2009 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

1.42:1 10.1% 31.7%

2.11:1 23.8% -28.8%

Tangible Net Worth (% of Net Revenue)

Receivables/Payable Ratio

Aged Receivables

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

77.6% 78.5%

1.4% 5.2%

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

31.8% 68.2%

27.2% 72.8%

36.4% 63.6%

51 2009 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Financial Stability