# Legal Herald: Insurance Agency Sales

> How independent insurance agencies and books of business are valued and sold: revenue and EBITDA multiples, carrier appointments, retention and deal terms.

Website: https://insurance-agency-sales.legalherald.com/
Part of: [Legal Herald](https://legalherald.com/llms.txt)
Last Updated: 2026-11-06

## Guide
- [Selling an Insurance Agency: Book Value, Carriers and Retention](https://insurance-agency-sales.legalherald.com/)

## FAQ

### How much is my insurance agency worth?
Agencies are priced on a multiple of commission revenue or, more often for larger agencies, a multiple of adjusted EBITDA. Small owner-run agencies sell at much lower multiples than larger agencies bought by private equity backed brokers, which have paid double-digit EBITDA multiples in recent years. Retention, growth, profit margin and the mix of commercial and personal lines move the number.

### Do I own my book of business?
Independent agents generally own their expirations, meaning the right to renew and solicit their clients, under their agency agreements with carriers. Captive agents who write for a single company usually do not own the book, and their contracts often provide a termination or transfer payment instead. Read your agency agreement, because ownership terms vary by contract and state.

### Do carrier appointments transfer when I sell my agency?
No. Appointments are contracts between the carrier and the agency, and carriers decide whether to appoint a buyer. In an asset sale the buyer needs its own appointments, and in a stock sale carriers usually must be notified and may review the new ownership. A carrier that will not appoint the buyer can force policies to be moved or rewritten.

### What is a retention-based payout in an agency sale?
Part of the price is paid after closing and adjusted by how much of the book's revenue renews with the buyer, usually over one to three years. It shifts the risk of client loss to the seller. Define in writing how retained revenue is measured and what happens if the buyer moves policies to a different carrier.

### Can I sell part of my book of business?
Yes, if you own the expirations. Agents often sell a segment, such as personal lines or a single carrier's policies, to focus on other work. The same carrier, licensing and retention questions apply to a partial sale.

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