Aon: MGA market premium volume totalled $109.2 billion in 2024

By Chris Munro

Aug 18 - (The Insurer) - The MGA market’s direct premium written volume hit an estimated $109.2 billion in 2024 with the increase driven by new formations and product offerings along with rate rises and a tighter admitted market, according to a study from Aon.

That $109.2 billion figure includes $90.4 billion of premium as per the NAIC’s definition of an MGA and associated Note 19 reporting, along with a further estimated $18.8 billion of unreported premium.

Over 60% of the premium generated by MGAs in 2024 was written by those entities who transacted less than $500 million of volume last year.

As Aon noted, “smaller MGAs (are) slightly dominating (the) market”.

Data from the Aon report shows that the MGA market’s DPW has doubled since 2021, highlighting the continued rampant growth of the market amid increased interest from capital providers, including private equity, and talented individuals drawn to the specialist sector from traditional industry players.

DEDICATED MGA CARRIER PREMIUM VOLUME UP 20%

Among those carriers that are dedicated to the MGA market, Aon said their collective DPW totalled $29.1 billion in 2024, an increase of 20% from the previous year, the report noted.

And in a clear indication of how much the MGA market has grown recently, Aon said the DPW generated by dedicated market carriers has increased by 242% in the past four years.

Aon’s study shows that State National was the largest MGA dedicated carrier in 2024, and the company generated well over $3.5 billion of DPW last year.

The broker, in its report, said State National’s largest MGA relationship is with Tesla Insurance Services, a partnership that in 2024 generated $654.01 million of DPW.

AF Group, which booked close to $3 billion of DPW, and Core Specialty, with almost $2.5 billion, were in second and third spot, respectively.

For AF Group, its largest MGA partnership in 2024 was with Program Brokerage Corporation and generated $170.6 million of DPW for the Lisa Corless-led carrier.

Core Specialty’s biggest MGA relationship in 2024 was with Amwins Specialty Casualty, through which it booked $291.4 million of DPW, Aon said in its report.

State National’s $3.5 billion-plus of DPW in 2024 was generated from more than 30 MGA relationships, while AF Group’s came from 25 and Core Specialty’s 12, the Aon study detailed.

However, as per Aon’s report, Trisura, which the broker said generated close to $1.5 billion of premium volume in 2024, had the highest number of MGA partnerships with 70.

Trisura’s biggest MGA relationship in 2024 was with Origin Specialty Underwriters, through which it generated $199.6 million of DPW last year, Aon’s report noted.

Accredited, which booked just north of $2.0 billion of premium last year, had 28 MGA partnerships in 2024, with its largest relationship with Brazos Specialty Risk, a partnership that saw $123.2 million of DPW flow through to the carrier last year.

MGAS OUTPERFORM TRADITIONAL MARKET

Those that specialize on the MGA space once again outperformed the broader P&C market, Aon found.

In its study, the broker said the MGA-focused carriers’ loss and loss adjustment expense ratio was lower than for the wider P&C sector for the second straight year, with the result “driven heavily by favorable catastrophe losses in commercial property”.

When it comes to the largest unaffiliated MGA reinsurer relationships, Lloyd’s of London remained on top in 2024 with $1.21 billion of DPW, as per Aon’s study.

Arch Re’s $970.0 million and Allianz’s $649.3 million put them in the second and third spot, respectively.

Topsail Re with $576.0 million and Roosevelt Road Re with $485.9 million held fourth and fifth in the table.