Medical and Professional · Seller's Guide

How to Sell an Insurance Agency

Insurance agencies sell on the book of business and commission renewals. Here is how a book is valued and sold.

Why It's Different

What makes selling an insurance agency different

An insurance agency's value is its book of business and recurring commissions. Renewal commissions, retention (persistency), and the mix of personal versus commercial lines create predictable, recurring revenue, the core of what a buyer acquires.

Carrier contracts and captive-versus-independent status shape the deal. Independent agencies with owned expirations and portable carrier appointments are the most valuable and flexible; captive agencies often sell back or transfer within the carrier's system under its rules.

How It's Valued

What is an insurance agency worth?

Most buyers value an insurance agency on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.

Insurance agencies are commonly valued as a multiple of annual commission revenue (often around 2 to 3 times for independent agencies) or a multiple of EBITDA for larger firms, driven by retention, line mix, and carrier contracts. I present your book, retention, and carrier appointments and structure the deal, including any earnout, to fit.

A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →

Confidentiality

Selling without your staff or competitors finding out

Selling an insurance agency works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.

What's your insurance agency actually worth?

Get a free, confidential valuation, built on your real numbers, with no obligation.

Request My Valuation

Frequently Asked Questions

Selling an insurance agency, answered

Primarily on recurring commission revenue and how well it retains (persistency), plus your line mix and carrier contracts. A high-retention, well-diversified book commands a stronger multiple. We document renewals and retention so the recurring value is clear.

Yes, a lot. Independent agencies own their expirations and can sell to a range of buyers; captive agencies usually transfer or sell back within the carrier's program under its rules and valuation. We approach each accordingly.

Yes. We market with a blind profile and NDAs so clients, staff, and carriers are not disturbed until the appropriate stage.

About Your Broker

Martin Navarro, Business Broker

Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.

Get a Free, Confidential Valuation

Tell me about your insurance agency. Every inquiry is confidential and there is no obligation.