Bertolini says London PE firm Inflexion backs MGA leaders “who invest in people”

By George Abbott

Feb 20 - Within the Managing General Agent ecosystem, private equity firm Inflexion prioritises investing opportunities around those with strong leadership teams that actively nurture future talent, according to Andrea Bertolini, head of financial services at the firm.

Speaking to The Insurer, Bertolini emphasised that successful MGAs are those where senior management is committed to training the next generation of leaders.

“Culture is important,” he said. “We want to invest in business leaders who attract new talent and pass on their knowledge.”

However, Bertolini acknowledged that this can be a challenge, particularly for MGAs led by top-tier underwriting talent. While these individuals excel in their field, they are not always as adept at building teams or developing leadership pipelines.

“For instance, a best-in-class specialist underwriter may excel in their field, but might not necessarily be the best at motivating those around them or structuring a team,” Bertolini noted.

For private equity investors, succession planning is a key consideration, particularly given the need for an effective exit strategy. The absence of a clear talent pipeline can create complications if a lead underwriter departs unexpectedly.

“If an MGA’s lead underwriter leaves for any reason and he hasn’t trained anyone to replace them, that impacts the business, and likely the investment and our exit strategy,” Bertolini explained.

Beyond leadership development, Inflexion also favors MGAs that are diversified across multiple lines of business and capacity providers, rather than relying on a single carrier or market segment.

That diversification, he noted, helps MGAs remain resilient to market cycles and underwriting fluctuations.

“We like to invest in MGAs that not only have strong carrier relationships, but also specialise across multiple lines,” Bertolini said.

Another crucial factor for Inflexion is an MGA’s technological infrastructure.

Bertolini said a well-built tech platform is an asset, as it reduces the need for costly upgrades as the business scales, enhances underwriting capabilities, and improves customer service.

“A good tech platform can be a real differentiator; it means the MGA won’t have to constantly update its systems as it expands” he said.

One of Inflexion's success stories was the sale of the broker DR&P to BMS in December 2024.

Market sources close to Inflexion noted that the sale was valued at 450 million pounds, representing a 10 times return on investment for the company.