2008 Best Practices Study

Agencies with Revenues Under $1,250,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Financial Stability

Top 25%

Average

Balance Sheet Current Ratio

1.37:1 11.7% 73.5%

2.12:1 30.4% 14.3%

Tangible Net Worth (% of Net Revenue)

Receivables/Payable Ratio

Aged Receivables

% Receivables Aged Past 60 Days % Receivables Aged Past 90 Days

17.5% 10.1%

7.5% 6.1%

Accounts Receivable

Average

+25% Profit

+25% Growth

Agency Billed vs. Direct Billed by Carrier % of P&C Revenues that are Agency Billed % of P&C Revenues that are Direct Billed

13.6% 86.4%

7.5%

18.6% 81.4%

92.5%

11 2008 Best Practices Study | Agencies with Revenues Under $1,250,000 | Financial Stability