Valuation Guide
How Much Is My Insurance Agency Worth? A 2026 Guide for P&C Agency Owners
Last updated: October 2026
Agency value depends mostly on recurring commission revenue, profitability, retention and lines mix. Below are published market ranges from third-party sources. They are not an appraisal or an offer from 6 Point Holdings. For a confidential read on your own agency, talk to us.
Published valuation ranges
| Agency profile | Published range | Source |
|---|---|---|
| Small owner-run agencies | About 2x to 3.5x seller's discretionary earnings, or roughly 1.5x commission revenue | Sentinel, 2026 guide |
| Agencies with roughly $1M or more of EBITDA | About 7x to 10x adjusted EBITDA | Sentinel |
| Small to midsized generalist agencies | 6x to 9x EBITDA | IA Valuations data via IA Magazine, March 2026 |
| Larger growth-oriented commercial agencies | 10x to 13x EBITDA | IA Valuations data via IA Magazine, March 2026 |
| Average sold insurance agency on BizBuySell, 2025 | 2.68x earnings and 1.53x revenue | BizBuySell |
| Average EBITDA multiple, end of 2025 | About 8.5x | IA Valuations, Valuation Views 2026 Q1 |
What drives your multiple
Retention
High, stable retention signals durable recurring revenue.
Lines mix
Commercial-weighted books tend to sit higher in published ranges.
Profitability and add-backs
Clean financials with documented owner add-backs support a stronger earnings figure.
Owner dependence
Agencies that run without the owner on every account carry less transition risk.
Carrier relationships
Strong, diversified appointments make the book easier to keep in place.
Growth trend
Consistent organic growth supports a higher multiple.
Account concentration
A few very large accounts increase risk and can lower the multiple.
Revenue multiple vs EBITDA multiple
Smaller agencies where the owner is also the main producer are often priced on a multiple of commission revenue or seller's discretionary earnings (SDE). SDE adds the owner's salary and personal expenses back to profit, because a buyer will replace the owner's role rather than the owner's lifestyle.
Larger agencies with a management team and producers in place are usually priced on adjusted EBITDA: earnings before interest, taxes, depreciation and amortization, normalized for one-time and owner-specific costs. EBITDA multiples look higher, but they apply to a smaller, fully loaded earnings number.
How to estimate a starting range
- 01
Total your trailing 12 months of commission and fee revenue.
- 02
Calculate owner-adjusted earnings (SDE or adjusted EBITDA).
- 03
Apply the published range for your profile.
- 04
Adjust for retention, mix and concentration.
- 05
Get a confidential indication from a buyer.
What buyers review in diligence
Commission statements, book by line and carrier, retention history, P&L, carrier appointments, staff and producer agreements, and E&O history.
Frequently asked questions
- How much is my insurance agency worth?
- Published 2026 ranges run about 1.5x commission revenue or 2x to 3.5x SDE for small owner-run agencies, and roughly 6x to 10x EBITDA for larger agencies, depending on retention, mix and profitability. These are market ranges, not an appraisal.
- What is the most important factor?
- Retention and the durability of recurring commission revenue.
- Are commercial books worth more?
- Published sources place commercial-weighted books at the higher end of ranges.
- Should I get a formal valuation before selling?
- It helps. A buyer's indication and an independent valuation answer different questions.
- Does 6 Point Holdings provide valuations?
- We provide a free, confidential, no-obligation indication of value, generally within a couple of weeks of signing an NDA and completing an initial review. It is a buyer's indication, not a formal appraisal.
Get a confidential indication of value
Free, confidential and no obligation. We sign an NDA before you share any financials.
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