Book of Business
The total portfolio of insurance policies managed by an agent, broker, or agency, representing the collective revenue base of the practice.
businessPublished 2026/06/10Last verified 2026/06/10
FAQs
- What is a typical book of business worth when an agency sells?
- Personal lines books typically sell at 1.5x to 2x annualized commission revenue. Commercial lines books command higher multiples — often 2x to 3x — due to higher average premium and stronger retention. Loss of key producers, carrier concentration risk, and declining retention reduce valuation multiples.
- Who owns a producer's book of business — the agent or the agency?
- Ownership depends on the producer's agreement with the agency and state law. Most agency employment agreements include non-solicitation clauses that limit a departing producer's ability to contact former clients. Independent contractors have more portability, but carrier appointment and licensing requirements still apply.
- How do agencies measure the health of their book of business?
- Key metrics include retention rate, premium per policy, loss ratio by line, multi-policy penetration, and new business written as a percentage of expirations. Agencies that track these monthly can identify deteriorating retention or carrier mix problems before they become critical.
Related Terms
Retention Rate
The percentage of policies up for renewal in a given period that successfully renew, measuring an agency's ability to retain existing premium volume.
Expiration List
A report listing policies expiring within a defined future window, sorted to prioritize the renewal outreach and remarketing workload for service staff.
Client Segmentation
Dividing an agency's book into groups by revenue, line, or risk profile to tailor service levels, staffing, and marketing.
Renewal Management
The structured process of managing expiring policies through outreach, remarketing, and negotiation to maximize retention and protect premium volume.