In a new report on the matter, Conning has revealed that the total U.S. Managing General Agents (MGA) market, including business written for the account of Lloyd’s syndicates, exceeded $102 billion in direct premiums written in 2023.
According to the firm’s report, Managing General Agents: Ahead of the Pack, in 2023, premium produced by MGAs continued to grow more rapidly than the property casualty market overall, continuing the significant growth trend experienced over the last two years. The estimated MGA premium written by U.S. insurance companies reportedly grew by 13%, while total property-casualty premium grew at 10%.
Lauryn Kothavale, a Vice President for Insurance Research at Conning, commented, “MGAs’ success hinges on a combination of talent, technology, capital and market conditions.
“In 2023, these factors converged, driving sustained growth and resilience, and paving the way for further sector expansion.”
Conning’s report also explained that fronting companies accounted for more than $14 billion in premium written by MGAs in 2023, an increase of 27% over the previous year.
“Approximately 17% of total MGA premium is now supported by fronting companies, a share that has more than tripled since 2020,” the firm said.
Conning continued, “Growth within the Lloyd’s market – historically, and still today, the largest single source of capacity for U.S. MGAs – did not experience substantial growth and experienced stagnation. Lloyd’s syndicates grew their U.S. binder business by just 1% to $7.5 billion in 2023.”
