Insurance Agency businesses typically sell for 1.5–2.5× annual revenue (renewal book pricing) in 2026. This guide covers verified insurance agency valuation multiples, key value drivers, typical deal structures, and market trends for brokers and buyers.
Last verified: 2026 | Sources: IBBA Market Pulse, BVR, BIZCOMPS transaction database
| Metric | 2026 Range |
| SDE multiple | 1.5–2.5× annual revenue (renewal book pricing) |
| EBITDA multiple | 6–8× EBITDA |
| Revenue multiple | 1.5–2.5× annual commissions |
| Average deal size | $300K–$5M |
| Time to sell | 4–8 months |
| SBA eligible | Yes — SBA 7(a) widely used for insurance agency acquisitions |
SBA 7(a) dominates — 85–90% LTV common; 10% down; 10-year term. Aggregators (Acrisure, Hub International, Patriot National) paying 6–8× EBITDA cash for quality books. Traditional buyer (P&C licensed agent): seller note + SBA combination.
↑ Rising strongly — insurance agency aggregator activity at record levels. Acrisure, Hub, Patriot, BRP Group acquiring at 6–8× EBITDA. Independent agency multiples compressed at smaller sizes but strong above $500K revenue.
Insurance agencies typically sell for 1.5–2.5× annual revenue for standard P&C books. Aggregators (Acrisure, Hub, Patriot) pay 6–8× EBITDA for quality commercial-focused agencies above $500K revenue. Renewal retention rate is the single most important valuation driver — agencies with 92%+ retention achieve top-of-range multiples.
The traditional insurance agency pricing rule of thumb is '1.5× to 2.5× annualized commissions' — where annual commissions equal the agency's total renewal book. Commercial-lines-heavy agencies achieve higher multiples than personal-lines-heavy books.
Insurance aggregators (Acrisure, Hub, Patriot) have significantly elevated mid-market agency valuations to 6–8× EBITDA. However, these prices are typically available only to agencies with $500K+ EBITDA and strong commercial lines books. Smaller agencies (under $300K revenue) still trade closer to the 1.5–2.0× revenue range.
Yes — SBA 7(a) is the most common financing method for insurance agency acquisitions under $5M. The SBA requires the buyer to hold a P&C license in the relevant state and typically finances 85–90% of the acquisition price with a 10-year repayment term.
Renewal retention rate is the most important single factor in insurance agency valuation. A book retaining 92%+ of policies annually is worth significantly more than one retaining 85%. Buyers model retention rates over 5–10 years — even small differences in retention rates compound significantly.
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