The MGA Market: Performance Leader as Dramatic Growth Continues

The MGA market continued its growth in 2024, with DPW (direct premiums written) rising 16% from the prior year, outpacing growth in the overall property-casualty market of 10%. We estimate that, in all its dimensions, U.S. MGA business was a $114.1 billion market in 2024. A Conning Report on the subject included several findings.

Historically, affiliated MGAs—those owned by insurance companies—have represented the largest share of market premium. However, over the past three years, nonaffiliated MGAs have gradually overtaken them, supported by strong relationships with fronting carriers. In 2024, nonaffiliated MGAs accounted for 46.6% of reported premium, compared to 45.3% for affiliated MGAs. Crop MGAs made up the remaining 8.1%, highlighting the evolving dynamics of MGA ownership in the market.

While overall growth in the MGA sector remains strong, a closer look reveals significant variation depending on the source of capital backing these entities. While business written for Lloyd’s syndicates by Lloyd’s coverholders (Lloyd’s-approved MGAs) increased by 14% to $8.5 billion, MGAs backed by fronting companies saw significantly stronger growth. Conning’s estimate of fronting premiums was more than $18 billion in 2024, a growth rate of 26%.

Four fronting companies—Accelerant, Sutton, Transverse, and State National—each posted exceptional growth in 2024, with the first three expanding by over 80%. While State National’s percentage growth was lower, its premium increase of more than $700 million earns it a place among the top performers. Notably, all four companies wrote more than $1 billion in premium while still achieving outsized growth, collectively accounting for 43% of the fronting market.

M&A activity involving U.S. MGAs, MGUs, program administrators, and wholesalers declined again in 2024, with only 33 transactions recorded, down sharply from 61 the previous 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.

While not all trends in the U.S. MGA market are easily quantified, several are widely recognized as key contributors to sustained premium growth. Chief among them is the agility of the MGA model, which enables faster decision-making and product deployment compared to traditional insurers. This flexibility, combined with the growing adoption of AI and automation, allows MGAs to streamline operations and respond quickly to market shifts. Additionally, the model continues to attract top-tier underwriting talent, drawn by the opportunity to work in more entrepreneurial and tech-enabled environments.

MGA Landscape

Conning’s analysis of insurer statutory filings identified $91.8 billion of statutorily reported property-casualty direct premiums written in 2024 produced by MGAs. There was 15.4% growth in MGA premium from 2023 to 2024, based on an “apples to apples” or same-set analysis using the same universe of insurers and MGAs in each year. This growth rate was slightly higher than the 14.3% growth from the prior year.

The $91.8 billion in MGA DPW includes only the premium required to be reported in statutory filings. MGA premium must be reported by insurers for those MGAs responsible for producing 5% or more of the insurer’s surplus. There are many smaller MGAs producing less than this for insurers. For example, the average premium supplied to Lloyd’s syndicates by MGAs in 2024 was only $8.9 million. We estimate that the premium identified through required statutory reporting represents approximately 85% of total MGA premium. The total MGA market is therefore estimated to be in the region of $114 billion, including $8.5 billion of premium sourced by U.S. MGAs for Lloyd’s.

Our analysis identified more than 850 MGAs. We estimate there are approximately 250 additional small MGAs whose business production does not meet the 5% threshold. Target Markets estimates the entire MGA universe consists of approximately 1,100 MGAs and program administrators—consistent with Conning’s estimate.

Conning 2025 MGA/Program Market Survey

In the spring of 2025, Conning conducted its tenth annual independent survey of MGAs, MGUs, and program administrators. For the second consecutive year, the survey also included insurers, such as fronting companies and reinsurers. This year’s expanded survey featuring responses from 77 MGAs and 57 insurers offers a comprehensive view of a market that continues to evolve rapidly, shaped by innovation, capital diversification, and growing specialization.

Capacity Constraints Easing Slightly

While capacity remains a concern, signs of improvement are emerging. Sixty-two percent of MGAs said it is increasingly difficult to find capacity for new programs, down from 71% in 2024. Similarly, 57% said replacing an insurer partner remains difficult, a decrease from 65% last year.

Technology Confidence Strengthens

Confidence in technology investment continues to rise. Only 25% of MGAs expressed concern about underinvestment in tech, down from 34% in 2020.

Meanwhile, 52% disagreed with the statement that they are not investing enough—indicating growing satisfaction with their tech strategies.

AI and Analytics Adoption Expands

MGAs are increasingly using data analytics to drive efficiency and profitability. Sixty-one percent of firms in business for four or more years said they are using analytics in ways that were not possible five years ago.

AI is being applied across underwriting, customer service, and risk modeling, with 35% of MGAs not currently using AI but exploring new AI use cases.

Optimism and Opportunity Remain High

Ninety-three percent of MGAs are exploring new markets over the next two years, with expansion into personal lines, property, and underserved niches leading the way. Respondents cited specialization, agility, and access to the nonadmitted market as key drivers of growth.

Insurer Engagement Deepens

Insurers continue to expand their use of MGAs, with 91% reporting increased engagement. The hybrid fronting model is gaining momentum, with 84% of insurers expecting it to grow due to its flexibility, alignment of interests, and ability to support new programs.

Risk Sharing and Capital Innovation

Sixty percent of MGAs are either using or considering captives to retain risk alongside reinsurers. Alternative capital is also playing a larger role, with 51% of MGAs seeing ILS funds provide capacity in their markets.

Nonadmitted Market Still Dominant

Forty-six percent of MGAs reported that 60% to 100% of their business is nonadmitted. Most do not expect a significant shift back to the admitted market, reinforcing the continued relevance of E&S platforms.

MGAs in Motion: A Model Built for What’s Next

While MGAs are often praised for their specialization and agility, their versatility is equally compelling. Unburdened by legacy systems, MGAs have the rare advantage of building modern tech stacks from the ground up, an edge that not only attracts top-tier technology talent, but also accelerates innovation. This digital freedom, combined with deep underwriting expertise, positions MGAs to pursue opportunities that traditional insurers may have overlooked or deemed too complex.

MGAs are increasingly serving as proving grounds for innovative capital management strategies. In our 2025 survey, 60% of respondents reported either creating captives to assume risk alongside reinsurers or actively considering doing so.

These reinsurance captives play a critical role in helping MGAs secure fronting partners by providing the rated paper—both admitted and nonadmitted—needed to operate effectively. They also foster stronger alignment with reinsurers by demonstrating shared risk and commitment to program performance, ultimately enhancing reinsurer confidence and capacity support.