What is a Retiring P&C Producer's Book Worth?

[insurance1822]

Depends on the carriers available and their relationship with those carriers.

I know of a few people that tried to sell a good book that were appointed through a cluster like Smart Choice and were having trouble selling that book due to the strict contract with that cluster.

A book with a good carrier like an Erie or Auto Owners would go for closer to 3X if not over 3X.

I see Erie's taken more rates on Auto in PA. Erie used to be the holy grail but now I'm crushing their skulls pretty much every single time.

 

[nyc2phi]

I see Erie's taken more rates on Auto in PA. Erie used to be the holy grail but now I'm crushing their skulls pretty much every single time.

Your area is saturated and they've been hit hard with weather over the last few years, bound to happen. Other parts of the state and other states they write in they're the same old skull crushing Erie

 

[benneaf]

Was that 120K in revenue or in net income? I am looking at purchasing a retiring agent's book. I'm wondering how this worked out.

 

[rgleyzer]

What % is personal and what has been the retention ratio historically for the book? Is the book on autopilot and just easily renews, or is there a full-time account manager handling this too? Assuming everything is in line with a typical book, i'd put anywhere from a 1.5x-2.0x value. i dont think anything is going for higher unless its a niche industry or product that another agency is really trying to get their hands on.