2003 Best Practices Study

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

CSR Summary

Average Book Serviced/CSR (Commissions)

Average Pay as % of Book Serviced

30%

$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000

20%

10%

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%

TECHNOLOGY PRODUCTIVITY

Information Technology FTE

Average

Top 25%

Number

1.0 2.0 0.2

High Low

Total IT Payroll Expense ($)

$60,369

$123,503

As % of Total Compensation Expense

2.3% 1.5%

As % of Net Revenues

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

1.32:1

1.83:1

B. Tangible Net Worth

other capital expenditures and handle stockholder redemption obligations. 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

Average

Top 25%

Tangible Net Worth (as % of Net Rev)

5.4%

17.2%

Page 66 2003 Best Practices Study