Published October 24, 2026
Sell my insurance agency or sell your insurance book of business
- Revenue
- $2,140,000
- SDE
- $486,000
- Asking price
- $1,650,000
- Multiple
- 3.4x SDE
- Reason for sale
- Owner retiring
To sell an insurance agency for a good price, you need three things before the first buyer call: three years of commission statements that show retention by line, signed agreements with every producer, and a clear picture of which buyer type fits your book. Small independent agencies commonly sell for about 1.5 to 3 times annual commission revenue, and most deals pay part of the price later, tied to how many policies renew. The owner who prepares a year ahead usually lands at the top of that range. The owner who sells the week after deciding to retire usually gets the bottom of it, plus a long earn-out.
Who buys insurance agencies
The buyer you pick shapes the price, the terms and what happens to your clients and staff after closing. Most agency owners get approached by one type of buyer and never hear from the others, which is the main reason agencies sell below their value.
| Buyer type | Typical deal shape | Strengths | Watch out for |
|---|---|---|---|
| Aggregator or PE backed platform | Cash at close plus an earn-out over 2 to 3 years | Highest headline multiples for clean commercial books | Your brand and systems usually go, and the earn-out targets can be steep |
| Neighboring independent agency | Cash plus a seller note, often SBA financed | Keeps clients local and staff in place | Smaller budgets, slower financing |
| Producer or employee buying you out | Seller note over 5 to 10 years | Smooth handover, clients know them | You carry the risk until the note is paid |
| Individual buyer or first time owner | SBA loan plus a smaller note | Will pay a fair Main Street multiple for a turnkey agency | Needs licensing and carrier appointments before closing |
If your agency writes mostly commercial lines with several carriers, aggregators will compete for it. A personal lines book with one or two carriers usually sells best to a local agency or an individual buyer who wants a ready book and is already appointed with the same markets.
How much will I get for my insurance agency
Buyers price an agency on recurring commission and how safely it renews after you step away. For agencies under about $1 million in commission revenue that usually means a multiple of trailing twelve month commission or of seller's discretionary earnings. Above that size, buyers move to a multiple of adjusted EBITDA, and the numbers change a lot.
| What the buyer sees | Effect on the multiple |
|---|---|
| Retention above 90% for three years | Pushes toward the top of the range |
| Commercial lines or employee benefits share above half | Higher, because those accounts renew more reliably |
| One carrier writes most of the book | Lower, the buyer may not get that appointment |
| Owner writes or services the biggest accounts personally | Lower, plus a longer earn-out |
| Producers without signed non solicitation agreements | Lower, the book can walk out with them |
| Clean agency management system data | Faster due diligence and fewer price cuts late in the deal |
A quick sense check: an agency with $500,000 in commission and 91 percent retention, mixed personal and commercial, typically draws offers somewhere around $900,000 to $1.25 million in total value. Run your own figures through the business valuation calculator for a range before you talk to anyone, and see recent asking multiples on our insurance agency for sale page.
Selling an insurance book of business versus the whole agency
Selling a book of business means selling the client list, policies and renewal commissions without staff, office or brand. It suits a solo agent who is retiring or changing careers, and the buyer is usually an agent who already has an office and appointments. Selling the whole agency transfers the entity or its assets with staff, systems and carrier contracts, which suits agencies with employees and a brand clients know.
Either way, expect part of the price to depend on retention. Common structures are:
- Cash at closing for a portion of the price, often 50 to 80 percent on a clean commercial book and less on personal lines
- A holdback or earn-out paid over 12 to 36 months on commission that actually renews
- A seller note at a fixed rate, common with SBA financed buyers and internal buyouts
- A consulting or employment agreement that keeps you available for introductions during the transition
Ask every buyer to show the total value and the cash at closing on the same page, because a higher headline number with most of it in an earn-out can be worth less than a lower clean offer.
How to sell my insurance agency step by step
- Pull three years of commission statements by carrier and line, and calculate retention on policies and on commission.
- Sign or update producer agreements with non solicitation terms and clear book ownership.
- Clean up the agency management system: expiration dates, premiums, lines and contact details for every active policy.
- Reconcile the premium trust account every month for at least a year, so a buyer's accountant can tie client premiums to carrier remittances without surprises.
- Get an indicative value, then decide which buyer type you want to reach.
- List confidentially, release client names only after an NDA and proof of funds, and compare offers on total value and cash at close.
- Plan the client introduction letter and your own role for the first renewal cycle.
The trust account step is where many small agencies lose time in due diligence. If your bookkeeping lags, a bank reconciliation tool can match the trust account statements to your books before a buyer asks for them. Our general selling a business checklist covers the tax returns, leases and legal documents every sale needs.
Where to sell your insurance agency
Most agencies change hands through four channels. Specialist agency brokers run a confidential process and charge a success fee, usually a percentage of the price paid at closing. Insurance trade publications run classified listings that reach other agents. Captive agents sell through their carrier's approved buyer process, since the carrier must approve the buyer. And many owners simply take the first call from an aggregator, which is fast but rarely the best price.
Listing on a marketplace with screened buyers sits between those options. On CompanyBrokers your agency appears with commission revenue, SDE, retention and asking multiple in one format, and every buyer e-signs the NDA and shows proof of funds before the data room opens, so client names stay private until you choose. The Owner Listing plan costs $49 a month, or $24 a month billed yearly. If you would rather have help, compare business brokers who sell agencies in your state, or read how business broker fees work before you sign an engagement.
How long does it take to sell an insurance agency
A prepared agency with clean data commonly closes in three to six months from the first serious buyer conversation. Add several months if the buyer needs SBA financing, licensing or carrier appointments, and expect longer if the owner still services the largest accounts personally.
Can I sell my book of business to another agent
Yes. Selling a book to another licensed agent is one of the most common exits for solo agents. The buyer must hold the right license and appointments with the carriers that write your policies, and most deals tie part of the price to how many policies renew in the first year or two.
Do I need a broker to sell my insurance agency
No, but a specialist broker runs a confidential process, brings several buyers to the table and handles negotiation, which can lift the final price. Owners selling a small book to a known local agent often sell directly and pay only for an attorney and a valuation.
What happens to my clients when I sell my insurance agency
The buyer takes over servicing the policies, usually at the next renewal, and you introduce them with a letter and calls to the larger accounts. Clients who hear about the sale from you first are far more likely to stay, which protects any earn-out tied to retention.
Can a captive agent sell their agency
Captive agents can usually sell the economic interest in their agency only to a buyer the carrier approves, under the terms of their agent agreement. Read your contract and talk to the carrier's agency transfer team before you list, because the rules and the transferable value differ by carrier.
List your insurance agency where buyers arrive screened
One listing with commission revenue, retention and the asking multiple, a data room and NDA plus proof of funds on every inquiry, from $24 a month billed yearly.