MGA Premium Growth Hits $89.9 Billion in 2024, Extending Double-Digit Streak

Premiums generated through managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) rose 15 percent to $89.9 billion in 2024, marking the fourth consecutive year of double-digit growth, according to AM Best's recent market segment report.

The report highlights that more than 700 MGAs surpassed the National Association of Insurance Commissioners' disclosure threshold, which requires reporting when an MGA's premium exceeds 5 percent of the risk-bearing entity's policyholder surplus. That figure is about 100 more than the prior year. However, market estimates suggest that more than 1,000 MGAs operate in the United States.

Much of the growth has come from new MGAs focused on specialty lines and niche markets. David Blades, associate director of industry research and analytics at AM Best, said, "The premium momentum by MGAs writing specialty commercial lines of coverage shows no sign of slowing down despite average account pricing moderating or even declining in certain lines such as workers compensation, professional liability—particularly directors and officers and employment practices liability—and cyber liability."

The number of MGAs generating $500 million or more in direct premiums written increased to 19 in 2024, up from 12 the year prior. Among those, six exceeded the $1 billion threshold, doubling the previous year's count.

The report also notes a growing trend toward nonexclusive MGA relationships. In 2024, an estimated 57 percent of US property-casualty direct premiums written came from nonexclusive arrangements, compared to 33 percent in 2017. This shift reflects insurers' push for distribution diversification and reduced risk concentration.

"Nonexclusive MGA arrangements give carriers greater flexibility to adjust their portfolios in response to loss trends, pricing cycles, or changes in reinsurance availability, allowing for easier exits by underperforming segments of their portfolio," Dawn Walker, associate director of industry relation (DUAE), said.

AM Best maintains a positive outlook for the segment, citing the resilience of DUAEs and their investment in technology and talent to sustain growth in specialty markets.

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