The MGA Market — Huge Growth Last Year

The investment management company, Conning recently took a long look at the managing general agent market and found it grew 16% between 2023 and 2024. Total direct written premiums hit $114.1 billion.

Nonaffiliated MGAs are doing better than insurance company-owned MGAs. In the last three-years they’ve grown more because of better relationships with insurers and reinsurers.

The nonaffiliated MGAs in 2024 accounted for 46.6% of the $114.1 billion. Affiliated MGAs had 45.3% of the income with specialty crop insurers getting the rest of the income.

That said, mergers and acquisitions for MGAs dropped significantly in 2024. There were just 33 deals compared to 61 in 2023. “However, with interest rates and inflation showing signs of stabilization, market participants anticipate a rebound in deal activity as strategic buyers and investors regain confidence,” the report said.

Source link: Business Insurance — https://bit.ly/3TIYsf9