MGA market grew 16% in 2024: Conning

The managing general agent market grew 16% to $114.1 billion in direct written premium last year, compared with 10% growth in the overall property/casualty insurance market, Conning said in a report Friday.

Nonaffiliated MGAs have overtaken insurer-owned MGAs over the past three years due to growing relationships with fronting insurers and reinsurers, Conning said. The Hartford, Connecticut-based investment management company included managing general underwriters and program managers in its estimate.

In 2024, nonaffiliated MGAs accounted for 46.6% of that $114.1 billion, compared with 45.3% for affiliated MGAs. MGAs for specialty insurers of crops make up the balance.

Mergers and acquisitions among MGAs fell sharply in 2024, with only 33 deals, compared with 61 in the prior year.

“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.

The MGA market will likely continue outpacing the general market in part because the distribution vehicles allow insurers to access markets without building dedicated underwriting operations, Conning said.