2001 Best Practices Study

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

How Time Was Spent

12.4%

1.0%

68.6%

9.0%

9.0%

Selling New Business (New or Acct Rounding) Marketing (Placement)

Claims Processing Customer Service Administration

CSR Summary

Average Book Serviced/CSR (Commissions)

Average Pay as % of Book Serviced

600000

30

500000

400000

20

300000

10

200000

100000

0

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%

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

1.23:1

1.77:1

B. Tangible Net Worth

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 other capital expenditures and handle stockholder redemption obligations.

Average

19.3% Top 25%

Tangible Net Worth (as % of Net Rev)

6.2%

98