Commercial Insurance Underwriting Agency — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
5×
Typical
7.5×
Max
10×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 7.5× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Commercial insurance managing general agents (MGAs) typically trade at 5×–10× EBITDA. Delegated underwriting authority from capacity providers, specialist niche lines with proprietary pricing models, and recurring gross written premium commissions support premium valuations. MGAs benefit from structural interest from both capacity providers and distribution consolidators. Capacity withdrawal and claims volatility are the primary risk factors.
Key Value Drivers
- Delegated underwriting authority
- Specialist niche lines with proprietary pricing
- Recurring GWP commission income
- Strategic M&A interest from consolidators
- Low capital intensity relative to full carriers
Key Risks
- Capacity withdrawal from supporting insurers
- Claims volatility in specialty lines
- Regulatory compliance under FSMA
- Pricing cycle compression
- Concentration with single capacity provider
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.