The Book-of-Business Market in 2026

The insurance M&A market refuses to slow down. As of November 2025, MarshBerry tracked 649 announced transactions in the U.S. insurance brokerage sector - a pace 1.3% higher than the prior year. Private capital-backed buyers accounted for 471 of those deals, or 72.6% of total activity.

But here's what the headlines miss: not every transaction involves a full agency changing hands. A growing share of these deals are book-of-business sales - faster, leaner transactions where individual producers or agencies transfer client portfolios without the overhead of staff, leases, or entity structures. For producers approaching retirement and agencies pursuing strategic growth, the insurance book of business for sale market has become the preferred vehicle.

The asset base fueling these transactions continues to expand. Direct written premiums reached $1.05 trillion in 2024, up from $952 billion in 2023. Independent agencies wrote 87.2% of commercial lines and 39% of personal lines - meaning billions in transferable commission streams are sitting inside books across the country.

This guide delivers concrete revenue multiples by line, valuation formulas, and tactical guidance for anyone looking to buy an insurance book of business or sell an insurance book in 2026. No fluff. Just numbers and process.

Book of Business vs. Full Agency Acquisition

What exactly is a "book of business"?

A book of business is the portfolio of client policies, commission streams, and carrier appointments that a producer or agency transfers to a buyer. The transaction excludes staff, office leases, technology infrastructure, and the legal entity itself. You're buying revenue and relationships - nothing more.

This matters because it changes everything about how you structure the deal. Book sales use revenue multiples, typically ranging from 1.0x to 2.5x depending on line of business and quality indicators. Full agency sales, by contrast, involve EBITDA-based valuations. According to Sica | Fletcher data, EBITDA multiples for insurance broker deals averaged 11.8x through the first half of 2025 - virtually identical to the 11.9x average in 2024.

When a book sale makes sense

Choose a book sale over a full agency acquisition in these situations:

• A producer retires but the agency continues operating
• A captive agent transitions to independent status and needs to divest
• An agency prunes underperforming lines to focus resources
• Geographic relocation makes servicing existing clients impractical
• A departing producer needs liquidity within 90 days

Insurance Journal reports that smaller books (under $500K revenue) trade at approximately 6.0x to 8.0x EBITDA when structured as mini-agency deals. However, most books today command at least 2x revenue at a minimum, regardless of structure.

Timeline comparison: Speed drives the decision

The most compelling advantage of a book sale is speed. Full agency acquisitions involve entity transfers, staff retention negotiations, lease assignments, AMS software migrations, and regulatory filings that drag timelines past six months. Book sales close in 30 to 90 days.

For buyers, shorter timelines mean faster revenue realization. For sellers, it means quicker access to capital. Both sides benefit from reduced legal fees and lower transaction risk.

Revenue Multiples by Line of Business

How revenue multiples work

The insurance book value formula for a book-of-business sale is straightforward:

Book Value = Annual Commission Revenue × Revenue Multiple

A book generating $200,000 in annual commissions with a 1.5x multiple sells for $300,000. The multiple varies significantly by line of business, retention rate, carrier mix, and growth trajectory. Agencies investing in digital transformation and modern client-engagement tools tend to command higher multiples because they demonstrate operational sophistication and better retention.

Personal lines multiples

Personal lines books trade at the lower end of the spectrum because of higher churn rates and price-sensitive clients. Personal auto books typically fetch 1.0x to 1.3x revenue. Homeowners books perform slightly better at 1.2x to 1.5x, driven by longer policy tenures and cross-sell potential. Monoline auto-only books rarely exceed 1.0x due to aggressive direct-writer competition.

Buyers acquiring personal lines books should factor in the cost of AI phone answering and service automation - personal lines generate high call volumes relative to revenue, and staffing those calls with licensed agents erodes margins quickly.

Commercial lines multiples

Commercial lines command premium pricing. Small commercial books (accounts under $25,000 in premium) trade at 1.3x to 1.8x revenue. Middle-market commercial books - accounts between $25,000 and $250,000 in premium - fetch 1.5x to 2.2x. The premium reflects lower churn, higher average commissions, and the relationship stickiness inherent in complex commercial placements.

The surplus lines segment adds another layer of value. AmWins estimates that 34% of U.S. commercial business is now E&S insurance, with the surplus lines market producing more than $115 billion in premium in 2023. Books with significant E&S exposure often trade at the high end of commercial ranges because of thicker margins and specialized expertise.

Benefits, life, and specialty lines

Group benefits books are among the most valuable due to recurring revenue structures. Expect multiples of 1.5x to 2.5x revenue. The key driver: benefits renewals involve HR departments, not individual consumers, which creates institutional switching costs.

Life insurance book valuation varies dramatically by product type. Term life books trade at 0.5x to 1.0x due to limited renewal streams. Whole life and universal life books can reach 1.5x to 2.0x because of embedded persistency value. Annuity trails command 1.0x to 1.5x depending on the carrier's trailing commission structure.

What Drives Premium Pricing

Retention rate: The single most important metric

Nothing moves the needle on insurance book value more than retention. A book with 92% retention commands a fundamentally different multiple than one with 85% retention. Here's why: at 92% retention, you retain roughly 78% of revenue after three years with no new business. At 85%, that number drops to 61%. The compounding effect of even small retention differences is dramatic.

Agencies that invest in 24/7 customer service and proactive renewal outreach consistently report higher retention. Buyers examining an insurance book of business for sale should request at least three years of retention data broken down by line and account size.

Average premium size and commission percentage

Larger average premiums signal more complex accounts with higher switching costs. A commercial book with an average account premium of $50,000 is worth more per dollar of revenue than one averaging $5,000 - even if total revenue is identical. Larger accounts also cost less to service per premium dollar.

Commission percentages matter too. A book earning 15% average commission on $1 million in written premium generates $150,000 in revenue. The same written premium at 12% commission yields $120,000. When you apply a 1.5x multiple, that three-point commission difference translates to $45,000 in transaction value.

Carrier concentration and appointment health

Books heavily concentrated in a single carrier carry risk. If that carrier exits the market, tightens underwriting, or reduces commissions, the book's value collapses. Diversified carrier mixes across three to five strong markets trade at premium multiples.

Carrier appointment transferability is equally critical. Some carriers require the buyer to hold existing appointments before they'll consent to commission assignment. Others restrict transfers entirely for captive producers. Verify appointment status before you sign a letter of intent.

Growth trajectory and technology adoption

Flat or declining books sell at discounted multiples. Growing books - those adding 5% or more in new business annually - justify premium pricing because they demonstrate market demand and active client relationships.

Buyers increasingly pay premiums for books attached to agencies using modern policy management software and automation tools. Clean data, organized client records, and documented workflows reduce integration risk. Books with messy records, handwritten notes, or no AMS system require significant post-acquisition investment.

For Sellers: Packaging Your Book for Maximum Value

Start preparation 12 to 18 months early

The worst time to prepare your book for sale is the week you decide to sell it. Start 12 to 18 months before your target transaction date. Focus on three areas:

1. Clean your data. Ensure every client record in your AMS is current - addresses, phone numbers, email addresses, policy details, and claims history. Buyers discount messy books by 10% to 20%.
2. Boost retention. Launch a systematic renewal review process. Agencies using AI virtual assistants for proactive renewal outreach have reported retention improvements of three to five percentage points within a single cycle.
3. Document your workflows. Create a service manual describing how you handle endorsements, claims intake, certificates, and billing inquiries. This reduces buyer uncertainty about transition complexity.

Timing the market

Springtree Group notes that an aging ownership population combined with significant private equity investment has made the independent insurance market highly competitive for sellers in 2025 and into 2026. Billions flow into the independent insurance space annually, creating favorable conditions for anyone ready to sell an insurance book.

Best Practices firms achieved record organic growth of 10.7% in 2025 while maintaining EBITDA margins at 26.1%. Revenue per employee climbed to $228,321 among these top-performing agencies. These metrics set the benchmarks buyers use to evaluate your book's performance relative to the market.

Non-compete scope and deal structure

Every book sale includes a non-compete and non-solicitation agreement. Typical terms:

• Non-compete duration: Two to three years
• Geographic scope: 25- to 50-mile radius or state-specific
• Non-solicitation: Three to five years for sold clients specifically
• Carrier restrictions: Cannot write with the same carriers for the restricted period

Most deal structures include approximately 80% cash at closing with the balance in an earn-out or holdback tied to retention benchmarks at 12 and 24 months. Sellers with strong retention histories can negotiate higher upfront percentages - sometimes reaching 90% cash at close.

For Buyers: The Integration Playbook

Pre-acquisition diligence checklist

Before you buy an insurance book of business, verify these items:

• Three years of commission statements by carrier and line
• Policy-level retention data (not just aggregate)
• Claims loss ratios by year and line
• Client contact information quality and AMS export capability
• Carrier appointment requirements and consent timelines
• Outstanding producer agreements or restrictive covenants
• Pending E&O claims or regulatory actions

Agencies using Sonant AI for lead qualification and call handling find that the diligence process also reveals operational readiness. If the seller's clients are accustomed to slow response times and inconsistent service, you'll face an uphill retention battle post-acquisition.

Retention projections: Plan for attrition

No book retains 100% of clients through a transition. Build your financial model around realistic retention curves. The industry standard looks like this:

Your Year 1 retention depends almost entirely on execution speed. Contact every client within the first two weeks of closing. Introduce yourself, confirm coverage details, and provide direct contact information. Agencies that deploy AI voice agents for these introductory outreach campaigns reach 100% of clients within days rather than weeks.

Carrier approval and commission assignment

Carrier consent is the longest and least predictable phase of any book sale. Each carrier has its own transfer policy:

1. Submit a written request with your agency code and appointment documentation
2. Carrier reviews the buyer's loss ratios, premium volume, and licensing
3. If approved, the carrier issues a commission transfer effective date
4. Policies begin paying commission to the buyer's agency code

Some carriers process transfers in two weeks. Others take six weeks or longer. During this gap, the seller continues receiving commissions and remits them to the buyer per the purchase agreement. Document this arrangement clearly in your asset purchase agreement.

Technology integration and service continuity

The moment you close on a book, clients start calling. They have questions about their new agent, their coverage, and whether anything will change. This surge of inbound calls represents both the greatest retention opportunity and the greatest risk.

Agencies that handle these transition calls with AI receptionist technology ensure no call goes unanswered during the critical first 90 days. At Sonant AI, we've seen agencies acquiring books reduce missed calls to near zero during transitions, which directly impacts Year 1 retention numbers.

Beyond call handling, you need to integrate the acquired book into your agency management system within the first week. Map every policy, set renewal reminders, and assign service teams. Delays in system integration create gaps where clients fall through the cracks.

Legal Considerations and Deal Structure

Assignment clauses and carrier consent

The legal backbone of every book sale is the commission assignment. Most agency-carrier contracts include language addressing whether commission rights can be transferred. Review these clauses carefully. Some contracts explicitly prohibit assignment without written consent. Others allow assignment with 30 days' notice.

If a carrier refuses consent, those policies cannot transfer. The buyer loses that revenue, and the valuation must adjust accordingly. Smart buyers include a carrier consent contingency in the purchase agreement: if carriers representing more than 15% of book revenue decline to consent, the buyer can renegotiate price or walk away.

Non-solicitation enforcement

Courts enforce non-solicitation agreements more consistently than broad non-competes. Structure your agreement with specific client lists attached as exhibits. Name the clients. Name the policies. This specificity makes enforcement straightforward if the seller later attempts to reclaim clients.

Standard non-solicitation periods run three to five years. Some states - California most notably - impose significant restrictions on non-compete enforceability. Engage local counsel familiar with your state's covenant laws before finalizing terms.

E&O tail coverage

The seller must maintain errors and omissions (E&O) tail coverage for policies written during their tenure. This protects the buyer from claims arising from the seller's prior advice or service. Require proof of tail coverage - typically extending three years past closing - as a condition precedent to funding.

Buyers should also review their own E&O policy to confirm acquired books fall within coverage scope. Some E&O carriers require notification of book acquisitions within 30 to 60 days of closing. For agencies managing back-office operations across multiple books, this administrative step is easy to overlook but critical.

Where to Find and List Books for Sale

Marketplaces and intermediaries

Several established channels connect book buyers and sellers:

• Agency Brokerage Consultants: Firms like Springtree Group, OPTIS Partners, and Sica | Fletcher specialize in insurance M&A, including book sales. Deals with M&A advisor representation traded at multiples approximately 25% higher than unrepresented transactions
• Carrier referral programs: Many carriers maintain internal lists of producers looking to sell and agencies looking to acquire within their appointed network
• State association classifieds: Big "I" state chapters and PIA affiliates offer listing services for member agencies
• Online platforms: BizBuySell, Agency Equity, and Insurance Book Exchange provide digital marketplaces
• Cluster groups and aggregators: Organizations like SIAA, Smart Choice, and Renaissance frequently book transfers among member agencies

Building a buyer pipeline

If you're actively looking to buy an insurance book of business, don't wait for listings. Build a proactive pipeline. Network at industry events. Tell your carrier representatives you're acquiring. Contact retiring producers in your market directly. Many of the best book acquisitions happen before the book ever hits a marketplace.

Agencies with strong SEO and digital presence attract inbound seller inquiries. Producers researching how to sell their book often search locally and contact agencies that appear established and well-reviewed.

Marketing your book as a seller

Package your book with a professional offering memorandum that includes:

• Three-year commission history by carrier and line
• Retention rate documentation
• Client demographic summary (geography, industry, average premium)
• Carrier appointment details and consent requirements
• Growth trend analysis

A well-prepared offering memorandum signals professionalism and speeds due diligence. Agencies that approach book sales with the same rigor they apply to business process management consistently close faster and at better multiples.

Operational Readiness: Maximizing Post-Acquisition Value

Scaling service capacity for acquired clients

Every book acquisition adds servicing load to your existing team. If you're already stretched thin, acquiring a $300,000 book without expanding capacity creates service failures that erode the very retention you're paying for.

Calculate your service capacity before closing. Revenue per employee among Best Practices agencies hit $228,321 in 2025 - use this as your benchmark. If your ratio falls significantly below this after the acquisition, you need to add capacity. Options include offshore staffing, remote customer service, or AI-powered automation tools that handle routine inquiries without adding headcount.

Automating the transition workflow

The first 90 days post-acquisition determine long-term retention. Build a structured transition workflow:

1. Week 1: Import all client data into your AMS. Verify accuracy of contact information, policy numbers, and renewal dates
2. Weeks 1-2: Send personalized introduction communications to every client via email and phone. Use conversational AI to scale outbound touchpoints
3. Weeks 2-4: Schedule coverage reviews for your top 20% of accounts by premium. These high-value clients need personal attention from a licensed agent
4. Weeks 4-8: Conduct account rounding analysis. Identify cross-sell opportunities across acquired clients
5. Weeks 8-12: Review first renewal cycle results. Adjust retention strategies based on actual outcomes

Agencies that deploy AI scheduling assistants during this period save 10+ hours per week on appointment coordination alone. That time goes directly toward client-facing activities that drive retention.

Measuring acquisition success

Track these KPIs monthly for the first two years post-acquisition:

• Client retention rate vs. pre-acquisition baseline
• Revenue retention rate (accounts for premium changes, not just policy count)
• Cross-sell penetration among acquired clients
• Service metrics: Response time, call abandonment rate, and client satisfaction scores
• Return on investment: Cumulative commissions received vs. purchase price paid

Most well-managed book acquisitions achieve full payback within 24 to 30 months. Agencies using modern AI tools to manage service delivery report accelerated payback periods because they maintain retention without proportional staffing increases.

Valuation Formulas and Worked Examples

The standard revenue multiple formula

Start with the basic formula, then adjust for quality:

Base Value = Annual Commission Revenue × Line-of-Business Multiple

Adjusted Value = Base Value × Retention Adjustment × Concentration Adjustment × Growth Adjustment

Here's how the adjustments work:

• Retention adjustment: 90%+ retention = multiply by 1.10. 85-89% = no adjustment. Below 85% = multiply by 0.85
• Concentration adjustment: No single carrier exceeds 40% = multiply by 1.05. One carrier exceeds 60% = multiply by 0.90
• Growth adjustment: 5%+ annual growth = multiply by 1.10. Flat = no adjustment. Declining = multiply by 0.85

Worked example: Mixed commercial and personal lines book

Consider a producer retiring with the following book:

• Small commercial commissions: $120,000/year (92% retention, diversified carriers, 4% growth)
• Personal lines commissions: $80,000/year (87% retention, 50% with one carrier, flat growth)

Small commercial: $120,000 × 1.5 (base multiple) × 1.10 (retention) × 1.05 (concentration) × 1.05 (growth) = $218,295

Personal lines: $80,000 × 1.2 (base multiple) × 1.00 (retention) × 0.90 (concentration) × 1.00 (growth) = $86,400

Total adjusted value: $304,695

This compares to a simple revenue multiple estimate of $276,000 (1.38x blended). The quality adjustments added nearly $29,000 in recognized value - or cost the seller that amount, depending on your perspective. Understanding how AI transforms agency operations helps both buyers and sellers understand what creates (or destroys) book value.

Market Outlook: Why 2026 Favors Both Buyers and Sellers

The current market creates a rare dynamic where both sides of the transaction benefit. Sellers enjoy elevated multiples driven by private equity capital flooding the space and a healthy number of agencies competing to acquire. PwC's 2026 outlook confirms continued M&A momentum in insurance, with strategic buyers and financial sponsors both actively deploying capital.

Buyers benefit from a demographic wave. An aging ownership population means more books are coming to market each year. The Big "I" and Reagan Consulting study found that the Rule of 20 - a composite metric combining organic growth with half of pro forma EBITDA - hit an all-time high of 25.1 in 2025. Agencies acquiring books at current multiples and applying Best Practices operational standards position themselves for outsized returns.

Public broker valuations have dropped 21.0% since March 2025, per MarshBerry's Broker Composite Index. This creates a trickle-down effect where mid-market and small agencies face less aggressive competition from the largest consolidators, opening opportunities for independent buyers who move decisively.

Whether you're evaluating an insurance book of business for sale or preparing to list your own, the numbers support action. Agencies deploying automation and AI during and after transactions consistently outperform those relying on manual processes. At Sonant AI, we work with agencies on both sides of these transactions, ensuring that every inbound call - from Day 1 of the transition - receives professional, immediate attention through our virtual assistant platform.

The insurance book of business for sale market rewards preparation, precision, and speed. Know your numbers. Package your book professionally. Execute the integration plan. The agencies that treat book acquisitions as disciplined investments - rather than opportunistic purchases - build the most valuable organizations in the industry.