Glossary
Book of business
A book of business is the full set of clients and policies an agency or an individual producer manages, usually described by total written premium and the commission revenue it generates. It is the core asset of an independent agency: when an agency sells, the book and its retention are what the buyer is paying for.
How a book is measured
The usual numbers: written premium, commission revenue, policy count, line mix (personal vs commercial), retention rate, and loss ratio. Two books with the same revenue can be worth very different amounts. A high-retention commercial book spread across strong carrier relationships beats a churning monoline book every time.
Buyers typically price a book as a multiple of revenue or earnings. The multiple moves with retention, account mix, carrier concentration, and how transferable the relationships actually are, which is why sellers get told to clean up their data before going to market.
Who owns the book
This is the recurring fight. In the independent agency system, ownership of expirations traditionally sits with the agency under its carrier agreements. That ownership of expirations is the structural difference between independent and captive agents: captives generally do not own their book.
Inside an agency, the agency-versus-producer question is settled by contract, not by who sold the account. Producer agreements spell out book ownership, non-solicitation terms, and what happens at departure. If the agreement is silent, expect a dispute.
Common questions
How is a book of business valued?
Typically as a multiple of commission revenue or earnings. The multiple depends on retention, line mix, carrier relationships, and transferability. There is no single standard number, which is why valuations get negotiated.
Does a producer own the accounts they sold?
Only if their producer agreement says so. Ownership is contractual. Many agreements keep ownership with the agency and restrict solicitation after the producer leaves.
Part of the Relay insurance operations glossary. Updated 2026-07-11. See how we source content.
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