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