Buy & sell / PRACTICAL GUIDE
What drives an insurance agency’s value?
Understand the questions behind a valuation before relying on a headline multiple.
Start with the right numbers
Written premium is the amount of insurance premium placed. It is not the agency’s revenue. Commission and fee revenue, recurring income, operating expenses, and earnings answer different questions. Label each figure, its period, and its source before comparing opportunities.
Look at the quality of the income
Organize information about retention, business mix, carrier concentration, and dependence on particular producers or accounts. Separate predictable operating income from bonuses that may not recur. These are useful questions for an appraiser or transaction advisor, not a formula for a guaranteed price.
Understand what is included
A whole-agency transaction and a book purchase can involve different assets, obligations, staffing, and transition needs. Ask what the proposed price covers and which assumptions support it. Compare payment timing and conditions alongside the headline amount.
Use a professional valuation for decisions
This website does not provide an automated valuation or a recommended transaction multiple. Request a documented analysis from an experienced professional and review the assumptions. Asking prices in advertisements should not be treated as evidence of completed sale prices.
Your next steps
- Label premium, revenue, and earnings separately.
- Identify recurring and non-recurring income.
- Clarify what assets and obligations are included.
- Have a qualified advisor assess the actual business.
General educational guidance. Confirm current requirements and terms with the relevant authorities, providers, and qualified advisors. Provider materials describe their own offerings; inclusion is not an endorsement.
Explore your next step