The U.S. Managing General Agent (MGA) growth once again outpaced the broader property-casualty market, with direct premiums written rising 16% year-over-year to an estimated $114.1 billion, a recent Conning study has revealed.
Conning’s latest strategic study, “Managing General Agents: Built for What’s Next,” highlights several market dynamics that have benefited the MGA sector.
These include continued migration of underwriting talent from carriers and brokers to MGAs, increased adoption of AI and automation, and sustained premium flow into the E&S market.
In addition to the continued migration of experienced talent, MGA growth in 2024 was also supported by the rapid scaling of platform-based MGAs accelerating program launches, and the increased adoption of AI and automation across operations.
According to the study, confidence in technology investment is rising – only 25% of MGAs expressed concern about underinvestment, down from 34% five years ago.
Furthermore, broad and resilient capacity support from reinsurers, traditional carriers, and fronting companies also contributed to the MGA growth.
Analysts highlighted the growing role of fronting companies, which supported more than $18 billion in MGA premium in 2024, an increase of 26% over the prior year. Approximately 20% of total MGA premium is now backed by fronting carriers.
MGA growth was also influenced by Lloyd’s maintaining its role as a leading capacity provider. MGA premiums backed by Lloyd’s syndicates – long standing leaders in supporting MGAs in the U.S. -rose by 14% during the year.
“Powered by talent, tech, and smart capital, MGAs continued to outpace the market in 2024—showing once again that agility wins in today’s insurance landscape,” said Lauryn Kothavale, a vice president for Insurance Research at Conning.
In 2024, MGA also benefited from the sustained premium flow into the E&S market. A large portion of MGA business is in the E&S market (excess and surplus lines), which is ideal for difficult risks, analysts explain.
In recent years, rising perceived volatility across multiple lines has accelerated the shift toward E&S, which has grown at a compound annual rate of 19% since 2019.
Conning’s report also noted that while M&A activity involving U.S. MGAs, MGUs, program administrators, and wholesalers declined again in 2024, with only 33 transactions recorded, down sharply from 61 the previous year, a rebound is anticipated.
However, with interest rates and inflation showing signs of stabilisation, market participants anticipate a rebound in deal activity as strategic buyers and investors regain confidence.
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