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Associated Press
04-06-2025
- Business
- Associated Press
Best's Market Segment Report: MGA Premiums Showed Double-Digit Growth for Fourth-Straight Year in 2024
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 4, 2025-- Year-over-year premium generated through managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) grew by 15% to $89.9 billion in 2024, a fourth consecutive year of double-digit percentage increases, according to a new AM Best report. The Best's Market Segment Report, 'MGA Premiums Show Double-Digit Growth for a Fourth Consecutive Year,' notes that National Association of Insurance Commissioners (NAIC) reporting regulations require that companies disclose individual MGA premium data only for those MGAs whose premium constitutes more than 5% of the risk-bearing entity's policyholder surplus. The number of unique MGAs that met the threshold for their premium to be reported and considered for this report exceeded 700 – about 100 more than the previous year. However, market research indicates that the total number of MGAs operating in the U.S. market exceeds 1,000. The growth in the number of MGAs can be partly attributed to new market entrants with expertise in niche markets, which is to insurers with capacity and appetite for specialty risks. '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,' said David Blades, associate director, Industry Research and Analytics, AM Best. 'With certain market segments experiencing moderated pricing, future growth rates could be impacted.' According to the report, the number of MGAs that produced $500 million or more in direct premiums written increased to 19 in 2024 from 12 in the previous year, with six of those carriers surpassing the $1 billion DPW mark, doubling the total of three from 2023. The industry also has pivoted toward non-exclusive MGA relationships, growing to an estimated 57% of U.S. property/casualty direct premiums written in 2024 from 33% in 2017, an indication that insurers increasingly value diversified distribution and are leaning on broader networks to expand market reach and hedge underwriting risk concentrations. 'Non-exclusive 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,' said Dawn Walker, associate director, Industry Relation (DUAE). In response to the DUAE segment's growth, AM Best introduced its Best's Performance Assessment in 2022, providing an industry-first tool providing an objective, independent opinion of a DUAE's ability to perform services on behalf of its insurance partners. AM Best maintains a positive outlook on the DUAE market segment, owing to the resilience of these organizations as they have effectively used strategic investments in technology and talent to expand premiums in the specialty commercial market. To access the full copy of this special report, please visit AM Best will host an online market briefing to discuss the DUAE segment on Thursday, June 5, 2025, at 10:00 a.m. EDT. To register, or for more information, please go to the event and registration © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on CONTACT: Dawn Walker Associate Director, Industry Relations (DUAE) +1 908 882 2422 [email protected] Blades Associate Director, Industry Research and Analytics +1 908 882 2071 [email protected] Sharkey Associate Director, Public Relations +1 908 882 2310 [email protected] Slavin Senior Public Relations Specialist +1 908 882 2318 [email protected] KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES SOURCE: AM Best Copyright Business Wire 2025. PUB: 06/04/2025 09:10 AM/DISC: 06/04/2025 09:09 AM
Yahoo
04-06-2025
- Business
- Yahoo
Best's Market Segment Report: MGA Premiums Showed Double-Digit Growth for Fourth-Straight Year in 2024
OLDWICK, N.J., June 04, 2025--(BUSINESS WIRE)--Year-over-year premium generated through managing general agents (MGAs) and other delegated underwriting authority enterprises (DUAEs) grew by 15% to $89.9 billion in 2024, a fourth consecutive year of double-digit percentage increases, according to a new AM Best report. The Best's Market Segment Report, "MGA Premiums Show Double-Digit Growth for a Fourth Consecutive Year," notes that National Association of Insurance Commissioners (NAIC) reporting regulations require that companies disclose individual MGA premium data only for those MGAs whose premium constitutes more than 5% of the risk-bearing entity's policyholder surplus. The number of unique MGAs that met the threshold for their premium to be reported and considered for this report exceeded 700 – about 100 more than the previous year. However, market research indicates that the total number of MGAs operating in the U.S. market exceeds 1,000. The growth in the number of MGAs can be partly attributed to new market entrants with expertise in niche markets, which is to insurers with capacity and appetite for specialty risks. "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," said David Blades, associate director, Industry Research and Analytics, AM Best. "With certain market segments experiencing moderated pricing, future growth rates could be impacted." According to the report, the number of MGAs that produced $500 million or more in direct premiums written increased to 19 in 2024 from 12 in the previous year, with six of those carriers surpassing the $1 billion DPW mark, doubling the total of three from 2023. The industry also has pivoted toward non-exclusive MGA relationships, growing to an estimated 57% of U.S. property/casualty direct premiums written in 2024 from 33% in 2017, an indication that insurers increasingly value diversified distribution and are leaning on broader networks to expand market reach and hedge underwriting risk concentrations. "Non-exclusive 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," said Dawn Walker, associate director, Industry Relation (DUAE). In response to the DUAE segment's growth, AM Best introduced its Best's Performance Assessment in 2022, providing an industry-first tool providing an objective, independent opinion of a DUAE's ability to perform services on behalf of its insurance partners. AM Best maintains a positive outlook on the DUAE market segment, owing to the resilience of these organizations as they have effectively used strategic investments in technology and talent to expand premiums in the specialty commercial market. To access the full copy of this special report, please visit AM Best will host an online market briefing to discuss the DUAE segment on Thursday, June 5, 2025, at 10:00 a.m. EDT. To register, or for more information, please go to the event and registration page. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Dawn Walker Associate Director, Industry Relations (DUAE) +1 908 882 2422 David Blades Associate Director, Industry Research and Analytics +1 908 882 2071 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
19-05-2025
- Business
- Business Wire
Best's Market Segment Report: Changing Environment Brings New Risks to D&O Insurers
BUSINESS WIRE)--Despite declining premium volume and challenging underwriting conditions, insurers providing U.S. directors and officers (D&O) liability coverage had their most favorable loss experience in more than a decade in 2024, according to a new AM Best report. Significant reserve takedowns from prior accident years during the hard market's peak also led to the best quarterly results in the past seven years and bolstered year-end 2024 results. However, according to the Best's Market Segment Report, 'Changing Environment Brings New Risks to D&O Insurers,' challenges remain from open claims dating to the soft-market years of 2016-2019, which developed adversely in 2024 and could persist. The report also notes that D&O liability underwriters will be challenged by a wide array of risk associated with artificial intelligence. 'Market uncertainty, evolving technology, corporate disclosure related issues, and potential macroeconomic strife stemming from new tariffs are among the factors affecting D&O segment,' said David Blades, associate director, Industry Research and Analytics, AM Best. 'Corporate executives continue to face a variety of challenges in managing complex risks amid rising uncertainty.' The report includes an analysis of data available from the monoline D&O liability supplement in the annual statement filings of U.S. companies. Based on that review, the direct loss ratio monoline D&O liability has improved by more than 10 percentage points from the high over the last 11 years (2014-2024) of 62.4 in 2017 and 2018. D&O underwriters are still benefiting from the significant rate and price increases and the more conservative underwriting and policy terms and conditions that drove a dramatic shift in the market's dynamics in 2020 and 2021. As 2025 approaches the halfway point, many market participants have expressed concern that recent pricing reductions that led to D&O liability direct premiums written (DPW) declining in each of the past three calendar years will not be sustainable. According to the report, the primary reason is the multitude of complex risks corporate executives are currently managing, which also include macroeconomic uncertainty; the evolving legal landscape; and the changing nature of cyber risks, in addition to others. While D&O liability premium for the entire industry was down by 6.0% year over year in 2024, much of that was from the first quarter. Total D&O premium for first-quarter 2024 of $2.2 billion was the lowest quarterly total in four years, with DPW increasing in each following quarter during the year. The increased premiums in the fourth quarter, coupled with significant reserve takedowns, led to a significant drop in the loss ratio. 'The loss ratio for the fourth quarter of 2024 was the lowest quarterly loss ratio of the past seven years by a wide margin, seven points better than for any other quarter,' said Christopher Graham, senior industry research analyst, AM Best. 'At the same time, continued profitable results could lead to sustained pressure on pricing if insurers have little reason to raise rates and risk losing profitable business.' To access the full copy of this report, please visit A video discussion about this report with Graham is available at
Business Wire
22-04-2025
- Business
- Business Wire
Best's Special Report: Challenging Market Conditions Yield Opportunities for Surplus Lines' Insurers
OLDWICK, N.J.--(BUSINESS WIRE)--Premiums generated by non-admitted insurers that comprise the U.S. surplus lines market continue to increase, underscoring the potential growth opportunities being generated from market pressures in the property/casualty segment, according to a new report released by AM Best. In a new Best's Special Report, AM Best notes that one key benchmark indicates a 12.1% year-over-year premium increase in 2024 for surplus lines' insurers reporting data to the 15 individual state service and stamping offices nationwide. Across the past three years (2022-2024), premiums produced by the service and stamping offices increased by 28.8%. The contributors to the growth include lines of business directly experiencing turbulence post-COVID from macroeconomic pressures. 'Although personal lines coverage, specifically homeowners' insurance, remains a relatively small part of the overall surplus lines market, increased writings in that segment have contributed to the consistent premium growth for surplus lines—or nonadmitted—insurers,' said David Blades, associate director, AM Best. 'Many states, in addition to multiple lines of business, have been key contributors to the momentum buoying the surplus lines market.' Similar to the premium generated across the broader property/casualty market, California, Florida, Texas and New York consistently account for the largest share of surplus lines premium. The report notes that even before the devastating California wildfires earlier this year, extreme weather that included heavy rains and mudslides led to unfavorable results for admitted writers of homeowners and commercial property coverage, prompting many companies to reassess their risk appetite. 'The California property market is likely to face more challenges in the near term, and surplus lines' insurers could look to fill supply gaps as more admitted insurers become reluctant to provide market capacity in areas of the state,' Blades said. Surplus lines' insurers have had the flexibility to meet demand during tough market times, which has led to surplus lines' homeowners' premium more than doubling during the last six years, from $1.0 billion in 2018 to $2.2 billion in 2023. During this time, the P/C industry's year-over-year homeowners market profitability has exhibited a higher-than-normal level of volatility. The report also found that coverages falling under the general liability banner have combined to represent the largest portion of the surplus lines market consistently from a direct premium written perspective. Initial data aggregations for 2024 indicate an almost 10 percentage point deterioration in the P/C industry's net incurred loss ratio for the other liability (occurrence) coverage line, which represents the larger of the two general liability coverage lines. To access a copy of this special report, please visit
