Book Archetype
Also known as: Book Type · Archetype Classification
Book archetype is a high-level classification of an agency's book — PL Commodity, Balanced, CL Specialty, or Premium Specialty — that determines the base multiple range before any quality adjustments.
What is book archetype?
The archetype is the fastest way to know roughly what multiple band an agency trades in. The MyAgencyValue methodology classifies books into four archetypes based on PL/CL split and retention.
PL Commodity (PL > 70%): personal-lines-heavy book. Standard auto and home. Easier for competitors to take. Multiple band 1.5–2.0x revenue.
Balanced (30% < PL < 70%): mix of PL and CL. Industry-typical. Multiple band 2.0–2.5x.
CL Specialty (PL < 30%): commercial-lines-heavy book. Stickier accounts, larger sizes, deeper carrier relationships. Multiple band 2.5–3.0x.
Premium Specialty (CL Specialty + 95%+ retention): the top of the market. Best-in-class retention combined with specialty exposure. Multiple band 3.0–3.5x.
Archetype sets the floor and ceiling of the revenue multiple. Quality factors then move within the band.
Why it matters in agency valuation
Knowing your archetype is the first step in any valuation conversation. If a buyer is quoting you a multiple outside your archetype's band, they're either making a mistake or trying to anchor low. Either way, naming the archetype gives you the language to push back.
Example
How MyAgencyValue uses this
Tier 1 reports the archetype explicitly in the result. Tier 2 inherits it as part of the cross-check.
Related terms
A revenue multiple values an insurance agency at a fixed multiple of its annual commission revenue, typically 1.5x to 3.5x depending on book composition and retention.
Personal lines (PL) refers to insurance products sold to individuals and households — primarily auto, homeowners, dwelling fire, umbrella, and renters insurance.
Commercial lines (CL) refers to insurance products sold to businesses — property, general liability, business owner's policies (BOP), commercial auto, workers' compensation, and specialty coverages.
Retention rate is the percentage of accounts (or premium) that renew with the agency from one year to the next, with industry-typical retention for P&C agencies in the 85–90% range.
A quality band is the up-or-down adjustment applied to a base multiple based on book quality factors — typically capped at ±1.5x of EBITDA multiple, distributed across 7–8 individual factors.
Last reviewed: April 24, 2026
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