Insurance books of business typically sell for 1.5x to 2.5x annual commission revenue. A book generating $150,000/year in commission revenue is worth roughly $225,000 to $375,000. The exact multiplier depends on retention rates, line mix, carrier diversity, geographic concentration, and how dependent the book is on the selling agent.
Personal lines (auto/home): 1.3x - 2.0x. Lower because retention can drop when the servicing agent changes.
Commercial lines: 1.8x - 2.5x. Higher because commercial clients are stickier and premiums are larger.
Life/benefits: 1.5x - 2.0x for renewals. Life insurance trail commissions are valued separately from P&C.
Blended book: Most agencies sell at 1.8x - 2.2x for a well-diversified P&C book with strong retention.
Retention rate. A book with 92% retention is worth significantly more than one at 82%. Buyers are purchasing future renewal income — high retention means that income is reliable.
Carrier mix. Books concentrated in one carrier are riskier. If that carrier exits the market or changes terms, the book collapses. Diversification across 5+ carriers is ideal.
Client demographics. Young families with long coverage horizons are worth more than elderly clients likely to downsize. Commercial accounts with growth potential are premium.
Clean data. Organized AMS records, documented client interactions, and clean policy files make due diligence easier and increase the sale price. Messy books get discounted.
Transition cooperation. Buyers pay more when the selling agent agrees to a transition period (typically 6-12 months) introducing clients to the new agent.
Step 1: Prepare your book. Clean up your AMS. Remove dead policies. Update contact information. Document your processes. The better organized your book, the higher the price.
Step 2: Get a valuation. Hire a professional agency valuation firm or use a multiplier-based estimate. Having a third-party valuation strengthens your negotiating position.
Step 3: Find buyers. Options include selling to another local agent, selling to a regional agency looking to expand, selling to your aggregator (some buy books), or listing on an agency acquisition marketplace.
Step 4: Structure the deal. Most book sales include a down payment (30-50%) plus earnout payments over 1-3 years tied to retention. This protects the buyer if clients leave after the sale.
Step 5: Transition. Introduce clients, transfer carrier appointments, hand over files, and be available for questions during the earnout period.
The best time to sell is when your book is growing, not declining. Buyers pay premium prices for books with upward momentum. If you wait until you are burned out and retention is slipping, the valuation drops. Start preparing 2-3 years before your target exit date.
Use our Book of Business tracker to monitor your premium, concentration, and carrier mix.
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