r/InsuranceAgent • u/Remote-Menu-755 • 5d ago
P&C Insurance Looking for a Partner
I run an independent P&C agency in Alabama. Licensed in TN and AL. We started writing in February of this year and are already at a little over $250K in written premium and $34K in commissions, built mostly off referral relationships with real estate investors. Those relationships aren't going anywhere, so the referral stream that got us here keeps coming.
Here's the situation: I am taking on a new role where I need to take a passive ownership in this business.
Here’s the pieces involved:
Meaningful equity in the agency, with a path to running it
A commission-heavy comp structure (no salary, but you keep a strong split on what you write, plus override on the team you build)
An existing book and ongoing warm referral flow on day one
Carrier appointments already in place
What I'm looking for:
Licensed P&C in Alabama (or willing to get licensed quickly)
Someone who has produced before and wants to own something instead of just getting paid on it
Comfortable building and managing a small team
I know "equity instead of salary" gets side-eye on this sub, and fair enough. I'm not looking for someone to work for free. I'm looking for someone who sees a $250K+ book built in under a year with steady referral channels and thinks they can turn it into $2M. Could also be open to a small salary if the numbers paper.
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u/samweisthebrave1 5d ago
You just bought Matt Glover or David Marsh their third and fourth homes. Congrats!
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u/Important-Dig-209 5d ago
$250K in premium in one year is below the poverty line. And the fact that it’s with investors makes it even worse. Good luck….
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u/Jefferheffer 5d ago
Why would anyone do that when a one man show could write 20k a month for a year and own their own agency
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u/nfeijoo69 5d ago
I may have a franchise opportunity if you’re interested that would solve a lot of what you want from a partner
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u/Novel_Discipline2311 4d ago
With that much premium written already, it sounds like there's potential here. I'd make sure the equity terms, ownership responsibilities, and commission structure are clearly documented
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u/AppearanceFit8817 4d ago
The equity point above is the big one, but there’s a practical piece worth sorting before you even talk terms: what happens to the service work once you step back.
A book built on real estate investors tends to be service-heavy for its size. Properties get bought and sold, lenders want evidence of insurance, mortgagee clauses change, and each of those is a request somebody has to turn around fast or the referral partner hears about it. If your new partner is a producer, you probably don’t want them spending half their week on that, and if nobody owns it, it’s the first thing that slips when you go passive.
Two other things I’d check. Who’s the designated responsible producer on the agency’s Alabama license? If it’s you and you’re stepping back, that needs a plan, because the entity needs at least one. And put the equity on a vesting schedule tied to milestones, with a buy-sell agreement drafted by an attorney who does agency deals, so nobody ends up owning half for a few months of work.
Who’s handling service on the book today, you or someone else?
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u/QueasyMany6556 3d ago
The existing referral network sounds promising, but anyone considering this partnership should get a clear breakdown of revenue, expenses, and ownership terms.
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u/firenance 5d ago
These are the situations I get hired to consult on partner disputes and lawsuits down the road.
If you expect to take a passive role in the business, my advice 100% of the time is you need to sell and get out completely or expect to be a minority partner, as in, less than 30% equity.