P&C Insurance Agency Valuation in 2026: How Buyers Price an Independent Agency

Independent P&C insurance agencies sell for a multiple of the revenue and earnings a buyer expects to keep after the owner leaves. In 2025, small owner-operated agencies sold on BizBuySell for an average of 2.68x seller’s discretionary earnings (SDE) and 1.53x revenue, at a median price of $650,000. Large platform brokers average about 14x EBITDA at close and 19x with an earnout, according to MarshBerry. Retention, line mix, carrier spread and owner dependence set where an agency lands in that range.

Key takeaways

• Buyers value agencies with revenue, SDE or EBITDA multiples, and agency size decides which leads.
• Small agencies averaged 2.68x SDE and 1.53x revenue in 2025 (BizBuySell).
• Platform brokers average about 14x EBITDA at close and 19x with an earnout (MarshBerry).
• Agency deals fell 15% in H1 2026, while prices held for larger, well-run firms (OPTIS).
• Retention, commercial mix, carrier spread and documented process raise the multiple.
• For a fast estimate, see what your insurance agency is worth.
• Value comes from what transfers without you, and you can raise it before you sell.

What is insurance agency valuation?

Insurance agency valuation is the price a buyer will pay today for the commission income an agency will keep producing after the sale. Buyers price future renewals and the staff, systems and carrier contracts that protect them, not past effort or physical assets.
Buyers start from adjusted earnings, not the raw P&L. They reset owner pay to a market salary and remove one-time and personal costs, which is why your P&L sets your book’s value. The result is SDE for a small agency or EBITDA for a larger one, and the buyer’s multiple applies to that figure.

How does a book of business sale differ from an agency sale?

An agency sale transfers staff, systems, brand and carrier contracts, while a book sale transfers only client relationships and renewal rights. Buyers apply a different multiple to each, and our comparison of selling an agency versus selling a book shows which delivers more value.

What methods do buyers use to value an independent agency?

Buyers use three methods, a revenue multiple, an SDE multiple or an EBITDA multiple, and agency size decides which one leads. Most buyers run two methods to cross-check the result. Our guide to how EBITDA drives agency valuation covers the larger-agency method in depth.

Method	Formula	Best fit	Typical buyer
Revenue multiple	Annual commission and fee revenue × multiple	A quick range for any agency	Individual agents and small-agency buyers
SDE multiple	(EBITDA + owner pay, benefits and perks) × multiple	Owner-operated agencies	Owner-operators who will step into the seat
EBITDA multiple	Normalized EBITDA × multiple	Agencies with a management layer	Private equity-backed platforms and regional brokers

How does a revenue multiple work?

A revenue multiple multiplies annual commission and fee revenue by a factor, and small agencies on BizBuySell averaged 1.53x in 2025. It ignores profit, so two agencies with equal revenue and different expense loads get the same number. Buyers use it to set a starting range.

How does an SDE multiple work?

An SDE multiple multiplies EBITDA plus the owner’s salary, benefits and personal expenses by a factor, and small agencies on BizBuySell averaged 2.68x in 2025, unchanged from 2024. Buyers of owner-operated agencies use it because they plan to replace the owner themselves.

How does an EBITDA multiple work?

An EBITDA multiple multiplies normalized earnings before interest, taxes, depreciation and amortization by a factor, and MarshBerry reports platform firms averaging about 14x at close and 19x with an earnout. Platforms and regional brokers use it because they run acquired agencies with hired managers.

Why are EBITDA multiples higher than SDE multiples?

EBITDA multiples run higher because EBITDA already deducts a market salary for whoever runs the agency, while SDE counts that pay as profit. A 2.68x SDE multiple and a 14x EBITDA multiple measure different earnings, not the same agency at two prices.

What are insurance agencies selling for in 2026?

The latest public data shows small agencies selling near 2.68x SDE and large platforms near 14x EBITDA at close. Size, margin and owner dependence explain the gap.

Seller type	Pricing measure	Latest figure
Small owner-operated agency	Average sale price as a multiple of SDE	2.68x
Small owner-operated agency	Average sale price as a multiple of revenue	1.53x
Small owner-operated agency	Median sale price	$650,000
Small owner-operated agency	Average sale price as a share of asking price	87%
Small owner-operated agency	Median days on market	184 days
Platform broker	Base price at close, multiple of EBITDA	About 14x
Platform broker	Base price plus earnout, multiple of EBITDA	About 19x

Sources: BizBuySell, MarshBerry

Most independent P&C agencies with one owner-producer sell into the small-agency group. Agencies with a management layer, strong margins and several producers draw EBITDA-based offers.

BizBuySell sellers closed at 87% of asking price on average in 2025, so a listing price overstates the result. For platforms, the five-turn gap between 14x and 19x shows how much of a large deal rides on performance after close.

What raises or lowers an insurance agency's multiple?

Retention, line mix, owner dependence and carrier spread raise or lower the multiple, because each one predicts how much revenue survives the sale.

How does retention affect agency value?

Retention affects value more than any other factor because a buyer’s return comes from renewals. Buyers measure it by policy count and by revenue, across several years and by line. A falling rate leads buyers to move part of the price into an earnout or holdback.

Does commercial or personal lines mix change the price?

Line mix changes the price because commercial accounts carry larger premiums per client and deeper service relationships, while personal auto and home books face more rate shopping. Buyers also check how much revenue sits with any single large client.

How does owner dependence lower the multiple?

Owner dependence lowers the multiple because a buyer cannot buy relationships that live only with the owner. When the owner writes most new business and holds the key accounts, buyers offer less cash at close, longer transitions or retention-based payments.

Why do carriers, contracts and AMS data matter?

Carrier spread, producer non-solicitation agreements and clean agency management system (AMS) data prove the revenue is real and transferable. A book spread across several carriers carries less risk than one tied to a single carrier’s appetite, and clean AMS records shorten due diligence. See what to prepare before you list your agency for each lever.

How is the 2026 M&A market affecting agency prices?

Fewer agency deals are closing in 2026, and OPTIS Partners reports valuations holding high for larger, well-run agencies while softening for others.

OPTIS counted 695 announced agency deals in 2025 across the US and Canada, down 12% from 2024. The first half of 2026 brought 292 deals, down 15% and the slowest start since 2016. Private equity-backed buyers made 76% of first-half acquisitions, spread across 68 unique buyers.

Growth is cooling as the P&C market softens. The 2026 Best Practices Study update from the Big “I” and Reagan Consulting shows top agencies growing organically at 6.2% to 10.2%, down from 8.7% to 11.3% a year earlier, with pro forma EBITDA margins of 23.2% to 30.7%.

With fewer active buyers, agencies that hold retention and margin through a softer rate cycle draw the strongest offers. The rest see tighter terms or more of the price tied to an earnout.

How do you estimate what your own agency is worth?

You can estimate your agency’s value in five steps using the same inputs buyers use.

1. Pull trailing 12-month revenue
   Start with the last 12 months of commission and fee revenue, split into new business and renewals. Buyers weight renewals most and discount contingency and bonus income, since carriers reset it each year.
2. Normalize earnings
   Set owner pay at a market salary and remove one-time and personal costs to reach SDE or EBITDA.
3. Match the multiple to your likely buyer
   Owner-operated agencies sit closest to BizBuySell’s 2.68x SDE and 1.53x revenue averages, while agencies with management and strong margins draw EBITDA-based offers.
4. Adjust for transferability
   Strong retention and a diversified carrier panel push an agency toward the top of its range, and heavy owner dependence or one dominant carrier push it toward the bottom.
5. Test the estimate with a buyer review
   A buyer prices what your carrier statements and AMS data show, so a buyer review turns an estimate into a number you can act on. The short version lives in our guide to how much your insurance agency is worth.

How does Renegade value and buy independent agencies?

Renegade Insurance buys independent P&C agencies directly, with a market-based valuation, cash at close and no broker fees. Renegade calculates each offer on retention ratio, commission revenue, growth trajectory and book mix, the same factors this guide covers, instead of applying a blanket multiple.

The sale runs in three steps:

1. Confidential consultation: You share your book and timeline, privately and with no obligation.
2. Comprehensive agency valuation: Renegade assesses retention, revenue mix and carrier relationships, then delivers a transparent, market-based offer.
3. Close and transition: Renegade manages the full transition, from carrier appointments to staff integration.

Existing carrier appointments stay active through the transfer, and Renegade’s service team manages renewals, endorsements and cross-sells after close. Owners not ready for a full exit can explore Back Office Support instead. See each step and book a consultation on the here.