Business Description

Rare opportunity to acquire a top-performing Farmers Insurance agency in one of Sacramento's most desirable areas. This long-established agency, originally founded in the early 1990s and acquired by the current owner in 2013, has delivered three consecutive years of accelerating revenue growth, culminating in 20% year-over-year growth in 2025 — approximately 5x the industry average.

The agency manages over $4.3 million in total written premium across 1,919 policies spanning Auto, Homeowners, Life, Commercial, and specialty lines. Revenue reached $578,673 in 2025 with CPA-verified Seller's Discretionary Earnings of $275,555, representing a 47.6% SDE margin — among the highest in its category.

This is not a typical captive agency. In addition to the core Farmers book, the agency operates a diversified independent brokerage platform generating approximately $100,000 in additional annual commissions across 150+ policies. This hybrid model provides revenue diversification and a built-in growth platform for the buyer.

The agency benefits from established referral relationships and a strong local reputation, driving high-quality inbound opportunities. It is also licensed in both California and Nevada, opening cross-border growth opportunities.

Retention is strong, with 100% Fire (homeowners) retention and 93% Life retention — both above district and state averages. Q1 2026 year-to-date retention stands at 96.87%, demonstrating continued momentum. The book is actively growing with 85 new policies written and a net increase of 23 policies in force through March 2026.

The agency comes staffed with four employees, including three licensed producers and one support/marketing role. All systems, processes, and carrier relationships transfer with the sale.

The seller is approaching retirement and is committed to a comprehensive 3-month post-close transition and training period to ensure continuity of client relationships and successful knowledge transfer to the new owner.

Farmers Insurance agencies benefit from transferable book ownership, recurring commission revenue, brand-backed lead generation, and carrier infrastructure. Unlike more restrictive captive models, Farmers' open-market transfer program allows a true third-party sale process.

This acquisition is well-suited for existing Farmers agents looking to expand, independent agency owners seeking a bolt-on, licensed insurance professionals entering agency ownership, or strategic acquirers building Sacramento market presence.

All financials are CPA-verified and SBA-underwriting ready. NDA required before receiving the full Confidential Information Memorandum.

Contact: Todd Eichman, Managing Partner — Transworld Business Advisors — [email protected] | 916-281-5838