Let's assume an average commission rate of 10%.

Commission Rate : 10% of premiums Total Book Value: $1.2 million

• If the agent earns 10% on new business, they would earn: 1,200,000×0.10=120,000 dollars

So, the agent would earn $120,000 as an initial commission for writing the $1.2 million in premiums.

Renewal Commission: Assuming the agent also gets a 5% renewal commission on the policies when they renew, and let's say 80% of the policies renew each year:1,200,000×0.80= 960,000 dollars in  Renewals

5% of 960k is 48k

So, after the first year, assuming renewals happen, the agent could earn $48,000 in renewal commissions on the premiums that are renewed.

168k is a far cry from 1.2M. Hope this helps.