2001 Best Practices Study

Analysis of Agencies with Revenues Between $500,000 and $1,250,000

How Time Was Spent:

13.6% 10.2%

Selling New Business (New or Acct Rounding)

Marketing (Placement)

Claims Processing Customer Service

7.6%

58.9%

Administration

9.8%

How Time Was Spent

9.8%

13.6%

10.2%

7.6%

58.8%

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

30%

$300,000

$250,000

20%

$200,000

$150,000

10%

$100,000

$50,000

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

1.29:1

2.11:1

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.

Top 25%

Average

Tangible Net Worth (as % of Net Rev)

1.4%

19.7%

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