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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.)
Receivables/Payables Ratio
53.8%
8.1%
2. Aged Receivables
Over 60
23.4%
7.6%
Over 90
16.8%
2.5%
CARRIER REPRESENTATION
A. Number of Carriers Represented
Average
+25% Profit
+25% Growth
Personal Lines
National
4.9
4.3
3.5
Regional
3.7
3.1
2.9
Commercial Lines
National
8.4
6.6
4.4
Regional
6.5
6.6
5.4
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
14.3%
15.8%
14.2%
% of Net Rev from Top 3 Carriers
29.0%
34.3%
27.4%
C. Service Center Use
Total Pers'l Lines Commissions placed
in Carrier Service Center
7.9%
*
*
Total Comm'l Lines Commissions placed
in Carrier Service Center
2.5%
*
5.6%
* - Insufficient Data
Average
Top 25%
Average
Top 25%
Page 67
2003 Best Practices Study