Generate Insurance Agency Financial Projections in 60 Seconds
Insurance agency valuations are driven by one asset: the renewal book. Buyers and lenders look at your book's retention rate, commission splits by carrier, and the ratio of new business commissions to renewal income. A projection that shows a growing renewal base with 88%+ retention tells a much stronger story than one built on aggressive new policy acquisition alone.
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How It Works
Three steps to your insurance agency financial projections
Describe your business
Tell us about your business model, revenue streams, costs, and growth expectations.
AI builds your projections
Our AI generates 5-year financial projections with income statement, cash flow, and key metrics.
Download and share
Export your projections as PDF or Word. Share with banks, investors, or your team.
Sample Output
See what insurance agency projections look like
Sample projections for a insurance agency based on real industry benchmarks.
Business Overview
Hargrove Insurance Partners is an independent P&C and commercial lines agency in Savannah, GA. The founder spent 8 years as a captive agent with State Farm before going independent and securing appointments with 7 carriers. The agency has built a $3.2M premium book over four years, generating about $384,000 in annual commission revenue. A full-time producer and a part-time CSR handle operations. Hargrove is financing $175,000 to hire a second producer, upgrade agency management software, and launch a commercial lines division targeting local restaurants and contractors.
5-Year Financial Projections
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Total Commission Revenue | $460,000 | $610,000 | $810,000 | $1,020,000 | $1,280,000 |
| Renewal Commission Income | $340,000 | $480,000 | $640,000 | $820,000 | $1,024,000 |
| New Business Commission | $120,000 | $130,000 | $170,000 | $200,000 | $256,000 |
| Net Income | $110,400 (24%) | $158,600 (26%) | $226,800 (28%) | $306,000 (30%) | $409,600 (32%) |
| Total Written Premium | $4,200,000 | $5,600,000 | $7,400,000 | $9,300,000 | $11,600,000 |
Key Financial Metrics
Book Retention Rate
89%
Avg Commission Rate
11%
Renewal-to-Total Ratio
74% → 80%
Revenue per Producer
$230K → $320K
Full projections include cash flow, balance sheet & more
Everything in your insurance agency financial projections
5-year revenue forecast
Year-by-year revenue projections based on your pricing, growth rate, and market size.
Expense breakdown
Detailed operating expenses: payroll, rent, marketing, materials, and overhead by category.
Profit & loss statement
Complete P&L with gross margin, operating income, and net profit for each year.
Break-even analysis
Know exactly when your business becomes profitable and the revenue needed to get there.
Done in 60 seconds
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Bank & investor ready
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Insurance Agency financial projections FAQ
How do insurance agencies project commission revenue?
Commission revenue has two components: new business and renewals. For new business, estimate the number of policies your producers can write per month (a solid producer closes 15 to 25 personal lines or 4 to 8 commercial policies monthly) multiplied by average premium and your commission rate (usually 10-15% for P&C, 15-20% for commercial). For renewals, take last year's book, apply your retention rate (85-92% is the industry range), and add an average 4-6% rate increase from carriers. Renewal commissions are the foundation of agency value because they recur with minimal acquisition cost.
What is an insurance agency book of business worth?
Independent P&C agencies usually sell for 1.5 to 2.5 times annual commission revenue, with the multiple driven by retention rate, growth trend, carrier diversity, and client demographics. A book with 90%+ retention and a healthy commercial lines mix can command 2.0 to 2.8 times revenue. Personal lines books with high churn (under 85% retention) trade closer to 1.0 to 1.5 times. Your financial projections should show the growing value of your renewal book, because that is the primary asset lenders and potential acquirers evaluate.
How long does it take an insurance agency to become profitable?
A scratch agency (starting from zero) generally takes 18 to 36 months to reach profitability. The challenge is that first-year commissions on new policies are your only income, and it costs $400 to $700 in marketing and time to acquire each new client. Agencies that start with a purchased book or a producer with an existing client base can be profitable from Month 1. Your projections should show monthly commission income crossing above monthly expenses (rent, staff, E&O insurance, technology) and the month that renewal income begins compounding. Most agencies reach a tipping point around $250,000 to $350,000 in annual commission where renewals start covering base operating costs.
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