Book of business

How a book is measured

Useful measures include written premium, commission revenue, policy and client counts, line mix, retention, and carrier concentration. Two books with the same revenue can have very different service costs, exposure to a single carrier, and prospects for retaining clients. Read those measures together.

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

Ownership of client relationships and expirations depends on the agency, carrier, and producer agreements. Independent agencies often have contractual rights to their expirations, but the scope and conditions matter. Do not infer ownership from a job title or distribution model alone.

Within the agency, producer agreements should explain ownership, compensation after departure, and any applicable restrictions. Review those terms before transferring accounts or estimating what a producer can take with them.

A more useful owner dashboard

Review client count and recurring revenue beside the hours spent servicing each segment. If revenue rises while client count falls, check whether rate changes are masking attrition. That is a different problem from a growing client base that needs more service capacity.