Insurance agency for sale and insurance book of business for sale
An insurance agency for sale is priced on its commission revenue and how much of it renews, not on the furniture or the lease. Small independent agencies and books of business commonly trade at roughly 1.5 to 3 times annual commission revenue, and agencies large enough to be valued on EBITDA sell for a multiple of earnings instead. Retention above 90 percent, a commercial lines share and several carrier appointments push the price up, while a book that rests on one carrier or on the owner's personal relationships pushes it down. On CompanyBrokers every insurance agency listing shows commission revenue, SDE, asking price, the implied multiple, retention and the lines of business, and the policy list, carrier statements and producer agreements sit in a data room you open after an NDA and a proof of funds step.
- NDA signed
- Proof of funds
- Data room
Insurance agency for sale near me
Set a deal alert for insurance agencies and books of business by state, line of business, price range and minimum commission revenue, and new listings reach your inbox the day an owner or a broker publishes them. Clean independent agencies with good retention rarely stay on the market long, because aggregators and neighboring agents are always buying, so an alert beats checking a search page once a week. Every inquiry passes an NDA e-sign and proof of funds before the seller releases client names, which is why agency owners list without telling their staff or their carriers too early. You can also browse every business for sale near me or the full range of small business for sale listings.
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How much is an insurance agency worth
Agencies under roughly $1 million in commission revenue are usually priced as a multiple of revenue or of seller's discretionary earnings (SDE), which is net profit plus the owner's pay and perks. Larger agencies with producers and account managers in place are valued on adjusted EBITDA, where buyers backed by private equity often pay well above Main Street multiples. The mix of lines matters as much as the size: commercial lines and employee benefits renew more reliably than personal auto and home, and new business written in the last year is worth less than accounts that have renewed for five years. The table shows how the profile moves the price for agencies of similar size.
| Agency profile | Commission revenue | Retention | Typical multiple | Indicative price |
|---|---|---|---|---|
| Personal lines book, one carrier | $180,000 | 85% | 1x to 1.5x revenue | $180K to $270K |
| Independent agency, mixed personal and commercial | $450,000 | 90% | 1.8x to 2.5x revenue | $810K to $1.13M |
| Commercial lines agency, 4 carriers, 2 producers | $900,000 | 93% | 2.2x to 3x revenue | $1.98M to $2.7M |
| Medicare and life book, mostly renewals | $120,000 | 88% | 1x to 2x revenue | $120K to $240K |
These rows are worked examples to show the math, not listings. Put your own numbers into the business valuation calculator to see a range for a specific agency, and read the full method in the business valuation formula guide.
What buyers check before buying an insurance agency
- Retention by line and by carrier over the last three years, measured on policies and on commission, not just on client count
- Carrier mix and whether the buyer can get appointed with the same carriers, since a book with no appointment for the new owner cannot be serviced
- Revenue split between new business and renewals, and the commission rates on each, plus any contingent or profit sharing commissions that may not repeat
- Account concentration, especially when one commercial client or one group benefits plan pays more than 10 percent of commission
- Producer agreements, who owns the book a producer writes, and whether non solicitation and non compete terms are signed and enforceable in that state
- Agency management system data quality, so the policy list, expiration dates and premium history can move to the buyer's system cleanly
- Errors and omissions claims history and who pays for the tail coverage after closing
- Premium trust account handling, because commingled client premiums are a compliance problem the buyer inherits in a stock sale
Independent insurance agency for sale or a captive agency
An independent agency owns its book and holds appointments with several carriers, so the buyer acquires the client relationships outright and can move policies between markets at renewal. That freedom is why independent agencies usually command the higher multiples. A captive agency, such as an Allstate agency for sale or a Farmers agency for sale, works under one carrier's agent contract, and the carrier approves the buyer, sets the transfer process and decides how much of the value is transferable. Before you make an offer on a captive agency, read the agent agreement, confirm the carrier's approval criteria and ask what training or capital the carrier requires from a new agent.
Insurance book of business for sale
Many sellers do not sell a whole agency, only a book of business: the client list, the policies and the renewal commissions, without staff, office or brand. A book suits an agent who already has an office and appointments and wants to add premium fast. Prices are usually set on trailing twelve month commission, and the deal often holds back part of the price for twelve to twenty four months and pays it only on the policies that renew. That holdback protects the buyer when clients follow a retiring agent out the door, so plan a letter from the seller to every client introducing you before the first renewal.
Financing an insurance agency purchase
Agencies with documented commission statements are regular candidates for an SBA loan to buy a business, and lenders who know the industry treat renewal commission as dependable cash flow. Buyers commonly put 10 percent or more down, and sellers often carry a note or accept an earn-out tied to retention. You also need a resident producer license in the agency's state and, in most states, an agency license before closing. Showing proof of funds or a lender letter at the inquiry stage gets you the data room first, and the buy a business guide walks through the letter of intent, due diligence and closing steps.
Selling your insurance agency
Owners who want to sell at the top of the range document retention by line, move producers onto signed agreements and clean up the agency management system a year before they list. Prepare three years of commission statements and tax returns, a carrier list with appointment status and a policy list without client names for the first round, then decide whether to list it yourself on the Owner Listing plan or get matched with business brokers who sell agencies in your state. Our guide to how to sell my insurance agency covers the buyer types, deal terms and timeline, and pricing lists the plans.
How much does an insurance agency sell for
Small independent agencies and books of business commonly sell for about 1.5 to 3 times annual commission revenue, depending on retention, lines of business and carrier mix. An agency earning $400,000 in commission with 90 percent retention would typically be priced somewhere between $700,000 and $1 million.
Is buying an insurance agency a good investment
For a licensed agent or an investor with a licensed operator, it often beats building a book from zero, because renewal commission arrives from the first month. Returns depend on retention after the seller leaves, so a cheaper book with weak carrier relationships can cost more in lost policies than a pricier agency with stable clients.
Can you get an SBA loan to buy an insurance agency
Yes, if the agency shows enough documented commission income to cover the loan payments and you meet the lender's licensing, experience and down payment rules. SBA 7(a) loans are common for agency purchases, and lenders review carrier statements and retention closely.
Do you need a license to buy an insurance agency
You need a resident producer license for the lines the agency sells, and most states also require the agency itself to be licensed with a designated licensed person. An investor without a license can own an agency only with a licensed principal in place, so check your state department of insurance before you sign.
Where do insurance agencies for sale get listed
They are sold through brokers who specialize in agencies, insurance trade publications, carrier networks for captive agencies and quiet sales to aggregators and neighboring agents. On CompanyBrokers you can set an alert by state so new agency and book of business listings reach you the day they are published, with the numbers already structured.