Insurance Agency Valuation
Insurance Agency Business Valuation Calculator & Exit Planning Built for Agency Owners
We built one platform that tracks your insurance agency business's value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Insurance Agency Owners Have No Idea What Their Business is Actually Worth
Current Insurance Agency Valuation Multiples (2026)
Insurance Agency values are strong due to increased buyer demand from consolidators like Acrisure, Hub, regional agencies. Here's what companies sell for:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Insurance Agency Business Value
Revenue and earnings are the two most influential factors in your insurance agency business's valuation. But not all companies are valued equally. Here are the factors that move your number up—or down:
Retention Rate
90%+ Retention
High retention means sticky clients. Below 85% indicates service or pricing problems. Insurance buyers calculate value based on book retention—agencies that keep clients renewing year after year are worth multiples of revenue.
Low retention = eroding book
Commercial Lines
60%+ Commercial
Commercial lines typically have higher commissions and stickier relationships than personal lines. A balanced book demonstrates diversification and captures the higher margins from business insurance.
Personal-heavy = lower margins
Producer Count
2+ Producers
Multiple carriers reduce dependence on any single insurer. Agencies captive to one carrier face concentration risk—independent agencies with diverse carrier appointments have more defensible books.
Solo producer = transition risk
Carrier Relationships
Direct Appointments
If you're still quoting and servicing everything, the book depends on you. Buyers need producers and CSRs handling day-to-day while you focus on growth and relationships.
Aggregator-only = limited margins
Technology Platform
Modern AMS
Agencies with AMS360, Applied Epic, or HawkSoft show professional operations. Modern agency management systems demonstrate proper documentation, renewal workflows, and integration-ready operations.
Outdated = integration nightmare
Growth Trend
10%+ Annual
Agencies growing organically (not just buying books) command premiums. 5%+ annual growth shows your producers are selling and your retention is working—buyers pay more for growing books.
Declining heavily discounted
How to Value an Insurance Agency
The U.S. independent insurance agency market includes over 40,000 agencies generating more than $55 billion in commission revenue. Insurance agencies are among the most valuable small businesses per dollar of revenue due to their embedded recurring commission streams.
Seller's Discretionary Earnings (SDE) is used for smaller agencies, while EBITDA multiples apply to larger operations. Insurance agencies typically sell for 2.5x to 4.5x SDE, among the highest multiples in small business. Agencies with strong book retention rates, diversified carrier appointments, and a growing commercial lines book command the top of this range.
Revenue multiples for insurance agencies commonly range from 1.5x to 3.0x annual commission revenue — far exceeding most industries. This premium reflects the fact that insurance commissions renew annually with 85-95% retention rates, creating an annuity-like income stream that buyers find exceptionally attractive and financeable.
The unique valuation driver in insurance is the book of business retention rate and commission structure. A book with 92%+ retention, diversified across personal and commercial lines, with no single account exceeding 5% of revenue, commands maximum value. Buyers also differentiate between standard market commissions and contingent/bonus commissions, which are less predictable. Agency management system data, loss ratios, and carrier relationship strength are all scrutinized during due diligence.
Insurance agency M&A activity has been at record levels, driven by private equity-backed aggregators like Acrisure, Hub International, and AssuredPartners paying premium multiples to build scale. Even small agencies benefit from this consolidation trend. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do insurance agency businesses sell for?
Most insurance agency businesses sell for 2.5x – 4.0x SDE or 1.5x – 2.5x annual revenue. However, the range is wide. Companies with strong retention rate can command significantly higher multiples. YourExitValue tracks exactly where you fall on each value driver.
How does retention rate affect my company's value?
Retention Rate is one of the biggest value drivers for insurance agency businesses. Consolidators like acrisure, hub, regional agencies specifically look for companies with strong performance here. Improving this metric can significantly increase your multiple.
How long before selling should I start tracking my insurance agency business value?
Ideally 1 to 5 years before your target exit. This gives you time to improve your retention rate, reduce owner dependence, strengthen your team, and document growth trends buyers pay premium prices for.
Who buys insurance agency businesses?
Common buyers include consolidators like Acrisure, Hub, regional agencies, as well as individual buyers looking to own a business and strategic acquirers. Each buyer type values different aspects. YourExitValue helps you understand what each looks for.
What valuation method is used for insurance agency businesses?
Most insurance agency businesses are valued using SDE (Seller's Discretionary Earnings) multiples for smaller companies under $1M in earnings, and EBITDA multiples for larger companies. Revenue multiples (1.5x – 2.5x) are sometimes used as quick reference.
What's the fastest way to increase my insurance agency business value?
The fastest improvements typically come from: 1) Improving your retention rate to hit the target, 2) Reducing owner dependence, 3) Documenting your systems and processes, and 4) Cleaning up financials. Most owners add 20-40% in 12-24 months.