Insurance Agency Valuation in Illinois
Illinois is a mature, mid-size P&C insurance market anchored by the Chicago metro and a broad network of independent agencies across the state’s agricultural and industrial belt. Chicago-area agencies with commercial lines depth are among the most actively sought acquisitions in the Midwest. Downstate agencies have a different buyer profile and trade at different multiples.
How Illinois agencies are valued
Illinois P&C agencies are typically valued at 1.5x to 2.3x annual commissions for smaller books, and 6x to 9x EBITDA for agencies with $3M+ in revenue. Chicago-area commercial books command the higher end of these ranges. Downstate personal lines books, with narrower growth prospects, trade toward the lower end.
Illinois-specific factors that affect valuation
Chicago commercial lines depth. The Chicago metro is one of the largest commercial insurance markets in the Midwest. Agencies with concentration in construction, manufacturing, hospitality, real estate, and professional services command premium interest from both regional and national acquirers.
Agricultural book value. Downstate Illinois has a significant farm and agricultural insurance market. Farm books are valued differently from standard P&C books — buyer interest is more specialized and multiples are typically narrower.
Illinois employment costs. Illinois’s minimum wage trajectory and employment cost environment affect EBITDA models. Buyers model Illinois staffing costs at a premium relative to adjacent states like Indiana and Missouri.
Frequently asked questions
What is an Illinois insurance agency worth?
Most Illinois P&C agencies are valued at 1.5x to 2.3x annual commissions or 6x to 9x EBITDA. Chicago-area commercial books with documented retention and organic growth are at the high end. Downstate personal lines books are at the lower end.
For the full valuation framework: Insurance Agency Valuation: The Complete Guide