# Retention rate

A term used when buying insurance agency.

The share of premium an agency keeps at renewal, in a business built almost entirely on them.

Retention is the multiple in this trade. A book renewing in the low nineties compounds and finances cleanly; one in the eighties is leaking faster than new business can fill, and the leak is invisible in a revenue line that looks flat. Ask for retention by carrier and by segment rather than in aggregate, since commercial and personal lines behave differently, and find out whether the renewals are worked by the owner personally.

Part of: Buying an Insurance Agency (https://searchspheresource.com/guides/buying-an-insurance-agency)

Source: https://searchspheresource.com/guides/buying-an-insurance-agency/terms/retention-rate
Not dated: The same editorial definitions as the glossary, inside a trade.

Site index for machines: https://searchspheresource.com/llms.txt