The global revenue earned by managing general agencies, managing general underwriters, and coverholder groups reached approximately US$23.9 billion in 2023, according to an updated ranking and analysis by marketing and consultancy firm Insuramore.
Between 70% and 75% of the revenue came from direct commercial property and casualty or non-life insurance, with the remainder from direct private P&C, life and health insurance, and reinsurance.
Last year’s market valuation marks an annual growth of over 20% compared to 2022, before accounting for inflation. The growth rate is nearly double that of the global insurance broking sector, which likely grew by over 11%. It also suggests that MGAs globally wrote premiums possibly exceeding US$200 billion across all insurance classes in 2023.
In the past year, Brown & Brown retained its position as the leading group in this sector, with MGA revenues roughly double those of the second-ranked Amwins. The subsequent ranks were held by Ryan Specialty Group, TIH, and Gallagher.
The top five groups together represented approximately 17.6% of global MGA revenues in 2023. The shares for the top 50, top 100, and top 300 groups were 55.4%, 67.5%, and 84.4%, respectively, reflecting a fragmented yet highly dynamic sector. According to Insuramore, there are around 3,000 enterprises involved in MGA activities worldwide, with over 1,650 projected to write premiums exceeding US$10 million this year.
By ownership, the top 300 groups in 2023 included 58 broker-owned, 31 insurer-owned, and 211 independent groups, many backed by private equity firms.
Among insurer-owned groups, Munich Re led in generating the highest revenues from proprietary MGA business in 2023, while NSM Insurance Group was the biggest independent group. Geographically, the US housed the most MGA groups in the top 300 with 163, followed by the UK (42), Canada (16), the Netherlands (12), and Germany (11).
In line with the industry’s high growth rate, nearly all MGA groups saw revenue increases in 2023, with 12 of the top 300 expected by Insuramore to have more than doubled their income compared to 2022, driven by organic growth and M&A (mergers and acquisitions) activity.
The sector has faced mixed outcomes, though, with several new MGA enterprises ceasing operations in 2023 or early 2024, and some segments, such as cyber insurance and niches like cannabis and pet insurance, potentially becoming overcrowded. Despite the challenges, the demand for more bespoke and innovative insurance cover, supported by advanced technologies, indicates a positive outlook for the global MGA market.
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