Insurance Agency Sale Multiples (2026): What Your Book Is Worth
Insurance agencies sell at 1.0x to 14x depending on size, line mix, and retention rate. Small personal-lines books trade on a revenue multiple. Agencies with $1M or more in adjusted EBITDA trade on an EBITDA multiple, and that is where the largest gains are right now.
PE-backed aggregators recorded 695 acquisitions nationally in 2025, up 27% year over year, and now represent nearly 70% of all disclosed insurance brokerage deals. That volume of buyer demand against limited quality supply is pushing multiples to decade highs for agencies in the $1M to $5M EBITDA range.
This page covers what each tier of insurance agency actually sells for, what moves the multiple most, and how PA and NJ agencies compare to national benchmarks.
- How Insurance Agencies Are Valued
- Insurance Agency Sale Multiples by Tier
- The Four Factors That Move the Multiple Most
- Revenue Multiple vs. EBITDA Multiple: Which Applies to You?
- Who Is Actually Buying Insurance Agencies Right Now?
- How PA and NJ Agencies Compare to National Benchmarks
- Related Resources
- Frequently Asked Questions
How Insurance Agencies Are Valued
Insurance agency valuation uses two methods depending on size. Small agencies, typically under $500K in annual commissions, are valued as a multiple of revenue because their margins are too variable for a clean EBITDA analysis. Larger agencies, those clearing $1M or more in adjusted EBITDA, are valued on EBITDA because PE buyers underwrite them like any operating business.
Revenue for this purpose means annual commission and fee income, not premium volume. A $5M premium book paying 12% commissions generates $600K in revenue. That $600K is what buyers multiply.
Adjusted EBITDA adds back owner salary above market, one-time expenses, and any personal expenses run through the business. For agencies with significant owner compensation, the gap between stated EBITDA and adjusted EBITDA can be 40% or more, directly impacting what buyers offer.
Insurance Agency Sale Multiples by Tier
These ranges are based on closed transactions reported by OPTIS Partners, Sica|Fletcher, and agency brokerage data through 2025. Individual results vary based on retention, line mix, carrier concentration, and seller involvement level.
| Tier | Agency Size | Typical Multiple | Primary Buyer |
|---|---|---|---|
| Owner-operated | <$500K revenue, personal lines | 1.0x–1.8x revenue / 2x–3.5x SDE | Individual buyers, SBA-financed producers |
| Established independent | $500K–$3M revenue / <$1M EBITDA | 1.5x–2.5x revenue / 5x–7x EBITDA | Sub-aggregators, regional strategics |
| Regional agency | $3M–$10M revenue / $1M–$5M EBITDA | 7x–10x EBITDA | PE-backed aggregators |
| Platform-quality | $10M+ revenue / $5M+ EBITDA | 10x–14x EBITDA | Large nationals, PE megadeals |
The highest documented multiples in 2025 were at the platform level: AssuredPartners sold to Gallagher at approximately 14.3x adjusted EBITDA in August 2025. Risk Strategies sold to Brown and Brown at approximately 16x on roughly $600M EBITDA. Those benchmarks set the ceiling. Most independent agencies in the mid-market trade well below them.
The Four Factors That Move the Multiple Most
1. Retention Rate
Retention rate is the single biggest swing factor in any insurance agency valuation. A 90% or better retention earns premium pricing and high cash at close. Sub-80% retention triggers heavy earnouts and compresses the multiple by two or more turns across every size tier.
Buyers use retention as a proxy for the health of the client relationships they are actually buying. A book with 85% retention means 15% of revenue is leaving annually. At a 7x multiple, that annual churn represents over one turn of EBITDA walking out the door every year post-close.
2. Line Mix
Commercial lines and specialty books command higher multiples than personal auto and homeowners. A 100% commercial book trades at 1.8x to 2.2x revenue. A 100% personal-lines book trades at 1.1x to 1.5x revenue. Employee benefits is the highest-valued specialty. Benefits books have stickier client relationships, recurring annual premiums, and cross-sell into voluntary and ancillary products.
3. Carrier Concentration
A single carrier representing more than 40% of revenue is a discount factor. Buyers price in appointment risk: if that carrier declines to re-appoint after the sale, a large chunk of the book becomes unplaceable. Diversifying carrier concentration before going to market is one of the highest-return preparation moves available.
4. Owner Dependency
A seller-dependent book, where the owner is the primary producer and the primary client relationship, is the single biggest discount factor regardless of retention rate. Buyers cannot underwrite a book that may walk when the seller leaves. Begin transitioning client contacts to other staff at least 12 months before going to market.
Revenue Multiple vs. EBITDA Multiple: Which Applies to You?
If your agency generates under $500K in annual commissions and operates as a personal-lines book, buyers will think in revenue multiples. A 1.5x revenue multiple on a $400K book yields a $600K value. SBA financing caps at $5M, so the deal can be done.
If your agency has more than $500K in commissions and meaningful EBITDA, the conversation shifts. Buyers will ask for a three-year adjusted EBITDA schedule and apply a multiple to your trailing twelve month adjusted EBITDA. A $1M EBITDA agency at 8x is worth $8M. The same agency sold on a revenue multiple at 2x might yield only $3M to $4M depending on total revenue. EBITDA multiples are almost always more favorable at this size, which is why buyers at the aggregator level always push for EBITDA framing.
For a deeper look at how valuation works at each revenue tier, see our guide to how to value an insurance agency by size.
Who Is Actually Buying Insurance Agencies Right Now?
PE-backed aggregators represent nearly 70% of disclosed insurance brokerage deals by transaction count. Active buyers in 2025 and 2026 include Acrisure (Bain Capital backed), Hub International (Hellman and Friedman, Apax, Leonard Green), BroadStreet Partners (Ethos Capital, White Mountains), Patriot Growth Insurance Services (Summit Partners, GI Partners), Alera Group (Genstar Capital, CDPQ), and World Insurance Associates (Goldman Sachs, Charlesbank Capital).
These buyers compete for agencies with $1M or more in adjusted EBITDA. Below $1M EBITDA, the buyer pool is regional strategics, independent agency roll-ups, and individual buyers. For a full breakdown of what each buyer type offers and how deals are structured differently, see our guide to PE aggregators vs. strategic buyers for insurance agencies.
How PA and NJ Agencies Compare to National Benchmarks
Pennsylvania and New Jersey agencies in the Philadelphia metro track closely with national multiples at every tier. The Philadelphia metro has a dense commercial market spanning construction, life sciences, manufacturing, and financial services, all of which support commercial lines books that buyers value at a premium.
High-net-worth personal lines in Chester, Montgomery, and Bucks counties command above-median valuations within the personal-lines tier because average premiums per account are materially higher than national averages. Keystone Insurers Group (Warburg Pincus backed) is active across PA, particularly in markets outside the Philadelphia metro, providing a realistic buyer for PA agencies of all sizes.
For PA-specific regulatory and tax factors that affect your net proceeds, see the full guide to selling a PA insurance agency.
Related Resources
- How to Value an Insurance Agency (by Revenue Size)
- PE Aggregators vs. Strategic Buyers: Which Is Right for You?
- How Long Does It Take to Sell an Insurance Agency?
- Asset Sale vs. Stock Sale Tax Implications
- How to Sell an Insurance Agency in Pennsylvania
Frequently Asked Questions
What multiple do insurance agencies sell for?
Insurance agencies sell for 1.0x to 1.8x annual commission revenue (small personal-lines books), 5x to 7x EBITDA (established independents), 7x to 10x EBITDA (regional agencies), or 10x to 14x EBITDA (platform-quality agencies). The biggest swing factor is retention rate: sub-80% drops the multiple by two or more turns.
Do insurance agencies sell on revenue or EBITDA?
Both, depending on size. Agencies under $500K in annual commissions typically sell on a revenue multiple because their EBITDA margin is too variable. Agencies clearing $1M or more in adjusted EBITDA sell on an EBITDA multiple, which almost always produces a higher dollar value than a revenue multiple at that size.
What is the current insurance agency M&A market like?
PE-backed aggregators drove 695 acquisitions in 2025, up 27% year over year, representing nearly 70% of all disclosed deals by count. Demand for quality commercial and specialty books exceeds supply in most markets including the Philadelphia metro. The mid-market band of $1M to $5M EBITDA is the most competitive buyer segment right now.
How much does retention rate affect the multiple?
Retention rate is the largest single swing factor. A 90% or better retention earns premium pricing and high cash at close. Sub-80% triggers earnouts and compresses the multiple by two or more turns. A drop from 90% to 78% retention can reduce a $10M offer to an $8M offer or less, depending on buyer risk appetite.
Do commercial lines agencies sell for more than personal lines?
Yes, materially more. A 100% commercial book trades at 1.8x to 2.2x revenue. A 100% personal-lines book trades at 1.1x to 1.5x revenue. At the EBITDA level, commercial and specialty books attract PE aggregators paying 7x to 10x EBITDA, while pure personal-lines books typically stay in the 5x to 7x range and attract a smaller buyer pool.
Can I sell a small personal-lines agency?
Yes. Small personal-lines books under $500K in revenue sell regularly, typically to individual buyers or other licensed producers using SBA financing. Expect a 1.0x to 1.8x revenue multiple and a significant earnout tied to book retention, since buyers using SBA loans need retention assurance before lenders will finance the deal.