What Is My Insurance Agency Business Worth in 2026?

An insurance agency typically sells for 1.57x to 2.41x annual revenue—or 3.18x to 4.33x SDE—in 2026. If your agency generates over $1 million in EBITDA, institutional buyers regularly push those numbers into the 10x to 12x EBITDA range. The market for independent insurance agencies is as active as it's been in a decade, driven by PE-backed consolidators like Hub International, Acrisure, and BroadStreet Partners deploying serious capital into the distribution sector.

Those numbers are for solid performers. If your agency has recurring commercial lines, low loss ratios, strong retention, and doesn't depend entirely on you to keep clients, you're in an excellent position heading into any sale process this year.

At a Glance

  • 1.57x–2.41x Revenue: Typical Multiple
  • Hub International, Acrisure, BroadStreet: Active Buyers
  • 6–12 Months: Typical Timeline
  • $500K–$5M Revenue: Sweet Spot

Who this is for: Independent insurance agency owners—particularly those running P&C, commercial lines, or specialty books—who are thinking about an exit in the next one to three years. This guide gives you a realistic read on what your agency is actually worth and what drives the number up or down.

How Is an Insurance Agency Valued?

Insurance agencies are valued differently than most businesses because their value lives in the book—the renewals, the retention rate, and the profitability of the underlying policies. There are three main methods buyers use, and which one applies to your situation depends largely on size.

The most common is a revenue multiple, applied to annual recurring commissions. For most independent agencies, this falls between 1.57x and 2.41x of annual revenue. An agency writing $2 million in commissions might realistically expect $3.1M to $4.8M in a transaction, depending on book quality. You can start estimating your range with the insurance agency valuation hub, which includes current market context and a free calculator.

The second approach is an SDE multiple, typically 3.18x to 4.33x for smaller agencies where the owner is still actively involved. SDE adds back owner compensation and non-recurring expenses to arrive at true cash flow. This is the most relevant metric for agencies under $2M in revenue.

For larger agencies—those generating $1M or more in EBITDA—institutional buyers shift to EBITDA multiples, which currently run 10x to 12x in the midmarket. These buyers are building platforms, and your agency fits a roll-up thesis. That's a fundamentally different transaction than selling to a regional competitor.

Book quality matters enormously. Commercial lines command higher multiples than personal lines. High retention (90%+), diverse carrier relationships, and low concentration risk all push your value up. If 20% of your revenue comes from one client, expect buyers to discount for that exposure.

What Multiples Do Insurance Agencies Sell For in 2026?

The range is wider than most agency owners expect. At the low end, a personal lines shop with high churn and owner-dependent operations might trade at 1.2x revenue or less. At the high end, a well-run commercial lines agency with consistent retention and clean financials can hit 2.5x revenue or above when multiple buyers compete for the deal.

For SDE-based sellers—typically agencies under $5M in revenue—current multiples are running 3.18x to 4.33x. These deals attract regional strategics, competing agencies looking to expand their footprint, and smaller PE-backed consolidators building coverage in underserved markets.

Midmarket agencies with $1M+ EBITDA are seeing 10x to 12x from strategic buyers. The reason: PE-backed platforms trade at 13x to 16x EV/EBITDA, so they can pay 11x for your agency and immediately realize gains when they fold your EBITDA into their platform. That multiple compression is what's driving competition for quality books right now.

Who Is Buying Insurance Agencies Right Now?

Three distinct buyer categories are active in 2026. PE-backed national consolidators—Hub International, Acrisure, BroadStreet Partners, and Foundation Risk Partners—are the most aggressive buyers. Hub and BroadStreet combined for over 100 acquisitions in 2025. These buyers pay premium multiples but come with integration requirements: your brand may be absorbed, your staff may be restructured, and you'll typically sign an earnout tied to book retention post-close.

Regional strategics are established agencies looking to grow their geography or add specialty capabilities. They typically pay slightly less than the nationals but offer more operational continuity. If keeping your team and client relationships intact matters, a regional buyer may be a better fit overall.

Independent financial buyers—family offices, search funds, and smaller PE firms building new platforms—round out the market. These buyers offer flexibility on deal structure but move slower and require more due diligence support. Insurance distribution is experiencing the same PE-driven consolidation dynamics seen across other service industries—the same urgency I outline on the HVAC business valuation page, where platform buyers changed the multiple calculus for independent owners almost overnight.

What Makes an Insurance Agency Worth More?

The biggest driver is book quality. An agency where 80% of revenue renews automatically every year—commercial accounts with long tenure and low churn—is worth substantially more than one that has to re-earn clients annually. Buyers pay for predictability above almost anything else.

Carrier diversification matters. Ten or more carrier appointments spread across commercial, personal, and specialty lines indicates market access and operational sophistication. Single-carrier concentration is a red flag that sophisticated buyers will discount in the LOI.

Staff independence. Agencies where producers have non-solicitation agreements in place, client relationships are institutionalized, and the book doesn't walk out the door with the owner get the top end of the range. If clients know and like you specifically, that's transition risk that buyers price in against you.

Clean financials close deals. Three years of tax returns, consistent revenue reporting, and documented producer agreements speed up due diligence and reduce re-trade risk at the closing table.

What Hurts Insurance Agency Valuations?

Key-person dependency is the number one valuation killer. When the owner is the face of every major client relationship, buyers price in attrition risk immediately. I've seen deals re-traded at closing because three of the agency's top ten accounts had purely personal relationships with the departing owner. That's an expensive surprise for everyone.

High loss ratios signal book volatility. A carrier who has seen consistent losses on your accounts will eventually reprice or non-renew, and buyers know it. Personal lines concentration in coastal markets adds additional exposure given carrier pullbacks in storm-prone states.

Disorganized files, deferred AMS maintenance, and missing carrier contracts add friction to due diligence. Every delay creates a re-trade opportunity for the buyer. Come to market prepared.

How Long Does It Take to Sell an Insurance Agency?

Most transactions close in 6 to 12 months from initial engagement. The fastest I've seen a clean deal move is about four months—everything was buttoned up, the buyer was motivated, and there were no surprises. More commonly, it's 8 to 10 months from first conversation to wire transfer.

The timeline stretches when sellers are unprepared with financial documentation, when earnout negotiations get complicated, or when state insurance licensing requirements create regulatory delays. Some states require prior approval for agency ownership transfers, adding 60 to 90 days to any timeline. Starting 12 to 18 months before your ideal close date gives you the runway to run a competitive process and field multiple offers.

"The agencies that get top-of-range multiples in 2026 all share one thing: they don't need the owner to run. I worked with a commercial lines agency owner in the Carolinas—phenomenal retention, clean AMS data, three producers under non-solicitation agreements. We had three letters of intent within 60 days. When clients know the relationship is with the firm, not just with you personally, the buyer pays for that security." — John M. Salony

Ready to find out what your insurance agency is actually worth? Schedule a confidential consultation to discuss your book and what a competitive sale process looks like for your specific situation.

Frequently Asked Questions

How Is an Insurance Agency Valued?
Insurance agencies are valued using three primary methods depending on size. For most independent agencies under $5M in revenue, buyers use a revenue multiple—typically 1.57x to 2.41x of annual commissions—or an SDE multiple of 3.18x to 4.33x. Revenue multiples are quick to apply and are often how PE-backed acquirers open a conversation. SDE multiples require normalizing owner compensation and add-backs but are a truer reflection of cash flow for smaller operations. For larger agencies generating $1M or more in EBITDA, buyers shift to EBITDA-based analysis. Midmarket EBITDA multiples for insurance brokerages currently run 10x to 12x, with some outlier transactions in specialty commercial lines pushing higher. The logic: institutional buyers are building platforms that trade at 13x to 16x, so paying 11x for a quality tuck-in creates immediate arbitrage when the EBITDA is consolidated. Book quality is a critical factor in where within any range you land. Retention rates, carrier diversification, loss ratios, revenue mix (commercial vs. personal lines), and key-person dependency all affect the multiple. A 95% retention commercial book with diversified carriers is worth significantly more than a personal auto book with 80% retention and one dominant carrier relationship.
What Multiples Do Insurance Agencies Sell For in 2026?
In 2026, insurance agencies are transacting across a meaningful range. Small agencies with personal lines concentration and owner-dependent operations are trading at 1.2x to 1.6x revenue or 2.5x to 3.2x SDE. Average-quality agencies—solid retention, decent carrier mix, some commercial presence—are in the 1.57x to 2.41x revenue range and 3.18x to 4.33x SDE range. Top-performing agencies with strong commercial books and institutional-quality financials regularly exceed 2.5x revenue when multiple buyers compete. The midmarket is more dramatic. Agencies generating $1M to $10M in EBITDA are seeing offers in the 10x to 12x EBITDA range from PE-backed platforms. Some specialty books in professional liability, healthcare, and E&S lines have gone higher. The driver is strategic value to the acquirer's platform, not just standalone cash flow. Revenue multiples are easier to calculate but don't account for margin differences. An agency writing $3M in commissions at 40% margins is worth more than one at $3M with 25% margins, even if the same revenue multiple is applied. Always understand your EBITDA alongside your revenue before entering any buyer conversation.
Who Is Buying Insurance Agencies Right Now?
The most active acquirers in 2026 are PE-backed national consolidators. Hub International completed 49 acquisitions in 2025. BroadStreet Partners led the market with 69 acquisitions. Acrisure continues its aggressive growth trajectory. Foundation Risk Partners is particularly active in the Southeast corridor. These buyers have capital, closing certainty, and the ability to pay premium multiples—but they also come with integration requirements and earnout structures tied to book retention. Regional strategics—established independent agencies looking to expand territory, add specialty capabilities, or acquire a retiring owner's book—are the second-largest buyer category. These transactions typically involve more personal terms, slower timelines, and slightly lower multiples, but they often result in better outcomes for sellers who care about their staff and clients post-close. Financial buyers—family offices, independent sponsors, and search funds—are also active, particularly for agencies with $300K to $800K in SDE. These deals often include more seller financing and earnout components but can deliver excellent outcomes for owners who want a partial exit with ongoing involvement. Running a competitive process with multiple buyer types almost always generates better terms than the first offer from any single buyer.
What Makes an Insurance Agency Worth More?
Five factors consistently move insurance agency valuations toward the top of the range. First is book quality: the mix between commercial and personal lines. Commercial books have higher retention, better margins, and more institutional buyer appetite. If you're 60% or more commercial lines, you're already ahead of most of the market. Second is retention rate. A 90%+ retention rate signals a well-managed book with sticky client relationships. Buyers model future cash flow based on what they expect to retain post-close. Higher retention equals higher certainty, which equals a higher price. Third is staff structure and producer agreements. Agencies with licensed producers under non-solicitation agreements provide buyers protection against book walkout at close. That reduces transition risk and directly supports a higher multiple. Fourth is carrier diversification. Ten or more carrier appointments across commercial, personal, and specialty lines demonstrates market access and operational sophistication. Fifth—and often overlooked—is clean, organized financials. Three years of tax returns matching your AMS revenue reports, documented add-backs, and organized carrier contracts eliminate re-trade risk in due diligence. Agencies that lose value in due diligence are almost always those that were never organized to begin with.