2003 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
53.8%
8.1%
2. Aged Receivables
Average
Top 25%
Over 60 Over 90
23.4% 16.8%
7.6% 2.5%
CARRIER REPRESENTATION
A. Number of Carriers Represented
Average
+25% Profit
+25% Growth
Personal Lines National
4.9 3.7
4.3 3.1
3.5 2.9
Regional
Commercial Lines National
8.4 6.5
6.6 6.6
4.4 5.4
Regional
Total Carriers
23.5
20.6
16.1
B. Commission Income as % of Net Revenue
Average
+25% Profit
+25% Growth
% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers
14.3% 29.0%
15.8% 34.3%
14.2% 27.4%
C. Service Center Use
Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center
7.9%
*
*
2.5%
*
5.6%
* - Insufficient Data
Page 67 2003 Best Practices Study
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