Recommendations for Selling a Book of Commercial Business Insurance in Illinois?

Hey there,

I'm an independent agent, working for an independent agency. I am leaving to accept an offer in another state. I have a book of business that earns $100,000 commission per year and would like to know the approximate worth of this book (2-3 times?) and the best options for selling it. I am a corporate officer at my current employer and I do not have a non-compete clause.

I would appreciate any suggestions, as I will not be able to serve these customers in my new state and my current employer will not be able to serve them as well as I have.

Thank you!

In Ohio it is typically 2 times commission. Probably the same in Illinois. As far as selling approach the independent agencies in your area. They may want to role the book into their own companies, but I guess that won't matter to you once the sale is made.

Not enough information. Is the book all with one carrier? How established is it? What's the annual loss ratio and retention rate? Do you split that $100K commission with your current agency?

See, selling the BOOK to someone that doesn't have a contract with every company where your book is placed, makes it worthless. Selling it to another agent at your current agency, you have to take the commission split into consideration.

Unless you have the contracts that the business is placed through, and the contracts are sellable (highly unlikely) you're not really selling a book - you're really selling an expiration list. You "might" get someone at your agency to buy it for half their share of the commissions, over three years - meaning, as the book shrinks through attrition as it's bound to do, the cost goes down. That's probably your best bet, I don't see anyone outside that agency buying it.

Actually, that is quite a small book, especially for commercial. We have single commercial clients in our office that generate that much commision (a hospital comes to mind - with all of their policies). My personal book, that I handle myself - all changes, questions, sales, etc - generates more than twice that amount of commissions & I work only 30 hrs per week. I have never heard of a producer that could sell a book from the agency when they leave. The book is owned by the agency, not the producer, the producer just gets a split of the agency commission for their wages. The agency has the contracts with the carriers directly, not the producer. You just have your license.
Also, a noncompete clause only says that you cannot work for another agency within a certain distance & sell the same products (it would be OK to switch agencies & sell personal or life instead of commercial in your situation). A nonsolicit clause says you cannot call your current clients to sell them insurance in your new agency, but if they call you for quotes (they heard you were working at the new agency & called you), then you can sell to them.
How do you know they will not be as well served after you leave? I'm sure a new producer will be hired in your place.
Anyway, I don't think you can do what you are proposing. Check with your current agency & see, but I doubt it. Your job title does not matter.