Ratings agencies bullish on Amynta MGA growth after raising revenue in 2024

By Chris Munro

July 10 - (The Insurer) - Amynta Group generated $1.4 billion of revenue in the 12 months to March 31, 2025, with Moody’s Ratings bullish on the growth prospects of the insurance services company’s MGA platform.

New York City-based Amynta operates through two businesses, one focused on the MGA sector and the other on warranties, including coverages for autos and other consumer products.

As Moody’s highlighted as it assigned a Caa2 rating to Amynta’s new $350 million of senior unsecured notes due 2033, the company serves leading insurance carriers, wholesalers, retail agencies, auto dealers and other parties throughout the U.S. and Canada.

Amynta’s MGA operations account for approximately three quarters of its net revenue, Moody’s said.

Proceeds from the notes issuance are expected to be used to repay Amynta’s first-lien revolving credit facility, fund a one-time dividend to its shareholders of approximately $220 million while also paying fees related to the transaction along with general corporate purposes including possible acquisitions.

In its report, Moody’s said Amynta has increased its revenue both organically and through acquisitions over the past several years. It has done that while also improving its Ebitda margins.

“Amynta continues to focus on controlling costs, streamlining systems and enhancing data and analytics capabilities,” Moody’s said.

S&P Global Ratings in a separate note assigned a CCC+ rating to the $350 million of senior unsecured notes.

In its report on Amynta, S&P said the company “has continued to perform well and has demonstrated favorable results.”

Amynta’s S&P-adjusted Ebitda margin as a percentage of net revenue was 28% for the 12 months ended March 31, 2025, a result that was flat relative to the prior-year period.

“We think this reflects the company’s effective balancing of ongoing internal investments with margin gains from scale efficiencies, along with some modest lift from its recovering higher-margin auto warranty business,” said S&P.

“We expect margins to remain stable on continued execution,” the agency added.

In Q1 2025, S&P said Amynta booked “robust” total organic growth of nearly 10%. That was driven by “strong” organic growth of 17% in its MGA platform during the period based on new exposure growth and new business production.

Amynta’s warranty segment had lighter organic growth of just under 2%. That, S&P said, reflected a return to growth in vehicle warranty, although Amynta’s smaller consumer warranty business remains pressured.

“We view this as a positive development after several years of decline in warranty due to persistently challenging market conditions. We expect sustained momentum in MGA and continued modest recovery in warranty to support total top-line growth of 7% to 11% through 2026,” said S&P.