2008 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

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

1.44:1

2.08:1 28.5%

Tangible Net Worth (% of Net Revenue)

9.1%

Receivables/Payable Ratio

52.4%

7.0%

Aged Receivables

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

7.0% -3.7%

3.3% 0.9%

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

40.2% 59.8%

35.9% 64.1%

33.2% 66.8%

71 2008 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Financial Stability