Year 1 P&C Revenues

[Verbgravy]

I realize that this number can range from $0 to Warren Buffett, just curious if anyone wanted to share their number or what they know of other agents doing their first year.

As a captive agent with a scratch agency about 6 years ago we did approximately $125k gross. That was including a lot of bonuses and startup benefits. As a one man personal lines first year independent show I'm forecasting a much more modest $45k in gross revenues.

 

[CaptiveGuy]

For a one person agency I'd assume $37k - $150k first year gross assuming 250k - 1M in premium sold year one.

Most agents I know that started scratch by themselves are on track to or produced 400k - 750k in premium the first year.

 

[JCK818]

Really depends on how much you do and how committed you are. If you bust your behind, you should do around 40-50k

 

[BTFuzz]

For a one person agency I'd assume $37k - $150k first year gross assuming 250k - 1M in premium sold year one.

Most agents I know that started scratch by themselves are on track to or produced 400k - 750k in premium the first year.

Year one? From scratch? A half mill in production in year one doing everything yourself is rare air unless you're finding mid to large commercial accts.

 

[CaptiveGuy]

Year one? From scratch? A half mill in production in year one doing everything yourself is rare air unless you're finding mid to large commercial accts.

We have larger auto premiums in the DC area which avg. around $1,500 for the year. Most of my multi-car clients pay near or over $2,000 annually.

I personally know 3 guys who worked with me at my old captive who will do near $500k premium year one as indy agents working alone. We also have higher cost of living...

 

[Verbgravy]

I don't think $400K in premium is impossible, but I feel a lot more comfortable planning at around $250-300k. In a crazy scheme to turn a profit, I'd like to keep my overhead modest, which I think may reduce my total premium, but hopefully create a better ROI and improve retention.

Maybe I'm just delusional too though.

 

[BTFuzz]

We have larger auto premiums in the DC area which avg. around $1,500 for the year. Most of my multi-car clients pay near or over $2,000 annually.

I personally know 3 guys who worked with me at my old captive who will do near $500k premium year one as indy agents working alone. We also have higher cost of living...

This seems much closer to reality with those figures. In my area the average auto premium (preferred, which I do mostly) is in the $600 range. So I have to write 3 to your 1.

 

[CaptiveGuy]

This seems much closer to reality with those figures. In my area the average auto premium (preferred, which I do mostly) is in the $600 range. So I have to write 3 to your 1.

I have a buddy that lives and has his resident license in rural WV but sells most of his business in the DC area. Gets the high commissions and also the low cost of living.

I guess a better way to compare for the OP would be policy count. Premium will vary greatly in different areas.