The short version
An insurance book of business is usually valued as a multiple of the recurring revenue it produces — often somewhere around 2x to 3x annual commissions for a healthy, high-retention book, though it swings a lot by line of business, carrier mix, and how “sticky” the clients are. But here's the catch that matters most: you can only sell or transfer value you actually own. Most captive and LOA agents don't own their book, so for them that multiple is worth exactly zero.
What actually drives the number
- Recurring revenue. Renewals and residuals are the engine. A book that pays reliably year after year is worth far more than one built on one-time sales.
- Retention. High persistency (clients who stay) raises the multiple; a leaky book lowers it.
- Line of business. P&C, life, and health books trade at different multiples because their renewal economics differ.
- Carrier mix & concentration. A spread of strong carriers is more sellable than everything riding on one appointment.
- Ownership & transferability. This is the gatekeeper. If your contract says the agency owns the clients, there's nothing for you to sell.
Why captive and LOA agents can't cash in
Under most captive and LOA agreements, every policy you write is booked under the agency's name. The agency — not you — holds the asset. You can build an impressive-looking book over a decade and still walk away with nothing, because the thing with resale value was never yours. That's the quiet cost of renting your license.
How to start building sellable value
Owning your book is step one; everything compounds from there. As an independent you keep the client relationships, the renewals, and a transferable asset that grows every year you produce. The move isn't just about take-home pay today — it's about building something that's actually yours to sell, borrow against, or hand down later.
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Book my free 15-minute callFrequently asked questions
How do you value an insurance book of business?
Most books are valued as a multiple of recurring revenue (annual commissions), commonly in the range of about 2x to 3x for a healthy book, adjusted for retention, line of business, carrier mix, and whether the book is actually owned and transferable. A formal valuation should be done by a qualified appraiser.
Can captive agents sell their book of business?
Usually not. Under most captive and LOA contracts the agency owns the book, so the agent has no transferable asset to sell. Owning your book — which independents do — is what makes it sellable.
What multiple does an insurance book sell for?
It varies widely, but healthy, high-retention books often trade around 2x to 3x annual commissions. Low retention, heavy concentration in one carrier, or unclear ownership all push the number down.
This article is general educational information for licensed insurance professionals, not legal or financial advice. Your own contract controls your specific situation — review it carefully, and when in doubt consult a qualified attorney.