Valuation Resources

Insurance Agencies and Brokers

SIC 6411 | NAICS 524210

The following guide to industry information, research, and analysis provides sources for industry trends and statistics, financial ratios, salary surveys, and more.

Select from the following sections or scroll below to view available resources:

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Industry Analysis, Trends, Statistics, and Forecasts

Insurance Agencies & Brokers  (view report)
Online Insurance Brokers  (view report)

Comprehensive research reports provide in-depth industry analysis and five-year growth forecasts, with special focus on the underlying structure and external forces and relationships that affect industries and their performance. Topics addressed in the reports include:

  • Market size, product segments, and major markets
  • Key statistics, market trends, and external drivers
  • Operating conditions and current performance
  • Competitive landscape and environment
  • Major company profiles and market shares
  • Five-year outlook and revenue forecast

The Council of Insurance Agents & Brokers
Leader's Edge Magazine
Monthly trade publication features news and information for commercial insurance brokers and insurance company executives, with topics covered in each issue including management tools and tips, market reviews, mergers and acquisitions, technology trends, and legal and regulatory issues, and special features including the annual "M&A Executive Report". Current and prior digital editions of the magazine are available online.

Independent Insurance Agents & Brokers of America
Publications available from this trade association include:

IA Magazine
Monthly publication features news and information for independent agents and brokers, with topics covered including agency management, market trends, sales strategies, new products and technology, and legal and regulatory issues. Selected articles from current and prior issues of the magazine can be viewed free online.

Agency Universe Study
Biennial study provides a comprehensive analysis of the independent agency system, with topics covered including number of firms, revenue sources, business mix, product diversification, employee staffing levels, agency ownership, technology usage, and marketing methods. Table of contents can be viewed free online.

Marsh, Berry & Company, Inc.
Annual Market & Financial Outlook Survey
Annual survey analyzes agent and broker performance trends by firm revenue size and geographic region, with topics covered in the survey including P&C premium rate changes, commission income growth rates, non-commission income trends, operating expense trends, anticipated changes in staffing levels, planned salary increases, and more. Executive summary can be downloaded and viewed free online with registration.

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Financial Statements and Financial Ratios

Industry Financial Ratios
Insurance Agencies and Brokers  Search for "524210"

Five-year financial statement analysis includes income statements, balance sheets, and key financial ratios, with data available by sales size range on a national, state, and metro area level including:

  • Income and expenses in dollars and percentages
  • Balance sheets in dollars and percentages
  • Profitability and return on investment ratios
  • Liquidity and working capital ratios
  • Asset turnover and efficiency ratios
  • Capital structure and debt service ratios

Reagan Consulting
Best Practices Study

Annual best practices study provides financial and operating benchmarks for six annual revenue categories ranging from under $1,250,000 to over $25 million, with benchmark categories covered in the study including agency profiles, revenues, expenses, profitability, employee overview, producers, service staff, technology, and insurance carriers. Prior year results and Excel-based comparison worksheet are available free online.

The National Alliance for Education & Research
Growth and Performance Standards
Independent agency survey provides "average" and "best performing" (top 25%) comparative benchmarks for income and expenses, balances sheet ratios, and productivity measures, with survey results broken out by agency size based on annual revenues, focus on commercial or personal lines, and market area population. Detailed table of contents, introduction, and other selected excerpts from the study can be previewed online.

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Compensation and Salary Surveys

Marsh, Berry & Company, Inc.
Agency Compensation Trends
Biennial compensation survey provides salary, bonus, commission, and benefits information for executive and management personnel, commercial and personal lines producers, customer service representatives, human resources consultants, and support staff, with survey results broken out by local market area population into rural (market area population < 10,000) and suburban/urban (market area population > 10,000) categories.

The National Alliance for Education & Research
Producer Profile: Compensation, Production, and Responsibilities
Chapters 5 and 13 of this study provide compensation data for commercial and personal lines producers broken out by age, insurance sales experience, agency size, agency location, professional designation, and educational level, and also include information on methods of compensation, bonuses, commission rates, and fringe benefits. Detailed table of contents and other selected excerpts from the study can be previewed online

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Business Valuation Resources

The Council of Insurance Agents & Brokers
M&A Executive Report
Annual mergers and acquisitions report includes information on transaction volume trends, acquirers by type, most active acquirers, deal pricing and structure, and guaranteed, realistic earn-out, and maximum earn-out purchase prices for platform, stand-alone, and roll-in transactions in terms of EBITDA multiples. Full report is included as a supplement to the May issue of Leader's Edge Magazine and can be viewed free online.

Empire Valuation Consultants, LLC
Determining Agency Value
Six-part series of articles originally written for PIA Magazine discusses key factors to be considered in valuing an independent property and casualty agency, with topics covered in individual articles including normalizing the agency's income statement, determining an agency's earnings capacity, valuation methods commonly used in valuing agencies, and arriving at a final conclusion of value. All articles are available free online.

The National Alliance for Education & Research
Publications available from this organization include:

Starting, Buying, Selling, and Perpetuating Insurance Agencies
Comprehensive guide covers the various aspects of starting, buying, or selling an agency, with Chapter 6 addressing topics such as valuing the book of business, synergistic value, balance sheet and fixed asset value, key factors affecting value, methods of calculating an agency's value, and who should do the valuation. Detailed table of contents, introduction, and other selected excerpts from the guide can be previewed online.

Critical Factors Impacting Agency Value
Research study focuses on understanding the critical factors that contribute to the value of an agency and identifying and implementing strategies which will positively impact value, with chapter topics including owner interviews, analyzing the critical factors, areas of analysis, challenges and rewards, and critical factor trends. Detailed table of contents, introduction, and other selected excerpts from the study can be previewed online.

Business Valuation Resources, LLC
DealStats® - Private and Public Company Transaction Data

Interactive database provides detailed transaction data for over 38,000 private and public companies sold for prices ranging from under $250,000 to over $500,000,000, with valuation measures provided including market value of invested capital as a multiple of revenue, gross profit, EBIT, EBITDA, SDE, and book value of invested capital. User guide, free webinar, and sample reports are available online.

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Related Industries:
Commercial Banks and Savings Institutions
Financial Planners and Investment Advisors
Insurance Companies and Carriers
Managed Healthcare, HMO, and PPO Companies


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