MGA Premiums Hit $108.7 Billion in 2025 as Capacity Scrutiny Tightens

Managing general agents and other delegated underwriting authority enterprises wrote $108.7 billion in direct premiums in 2025, up 17.8% from $92.3 billion in 2024, according to AM Best’s annual market segment report on MGAs.

That growth rate far outpaced the broader U.S. property and casualty industry, which posted a 5% increase in direct premiums written for the year. Despite the strong numbers, the ratings agency is signaling that the era of unchecked expansion may be giving way to a more disciplined phase, as carrier partners grow more selective about where they deploy capacity.

Sustained Growth Meets a More Cautious Capacity Environment

The 2025 figures mark the fifth consecutive year of double-digit direct premium growth for MGAs, driven by continued demand for specialty and hard-to-place coverage, niche underwriting expertise, and investment in technology. Nearly 800 unique MGAs met the reporting threshold in NAIC annual financial statements in 2025, roughly 50 more than the prior year, though AM Best noted the overall market total is likely understated because smaller MGA relationships fall below the disclosure threshold.

At the top of the market, concentration remains significant. Rain and Hail LLC, which writes crop insurance exclusively through Chubb, led all exclusive MGAs with $4 billion in direct premiums in 2025. J.H. Ferguson & Associates LLC, the intermediary through which Global Indemnity’s Diamond State Insurance Company writes vacant property business, was second at $3.9 billion. Twelve exclusive MGAs wrote more than $1 billion in direct premiums last year, and four exceeded $2 billion.

AM Best maintains a stable outlook on the global DUAE segment, citing its role as a go-to market for specialty underwriting talent, technology, and niche relationships. But the firm said that optimism among insurers and reinsurers is “a bit more guarded,” with some strategic partnerships being reassessed to ensure mutually beneficial alignment of goals. The report describes insurers as increasingly focused on long-term underwriting quality over growth, demanding greater loss ratio stability and applying more rigorous due diligence before extending or renewing capacity arrangements.

E&S Moderation and Shifting Investment Patterns Add Pressure

Much of the DUAE segment’s recent expansion has been tied to growth in the excess and surplus lines market, which has provided a receptive environment for specialty and non-standard risks. That tailwind is weakening, according to the report.

“It’s not limited to capacity producers being more selective,” said David Blades, associate director, AM Best. “There is also a sense of heightened oversight that is becoming a more intentional focus of insurers seeking long-term success over short-term market share expansion. Additionally, tighter economics in renewal negotiations are presenting difficult challenges.”

AM Best noted that E&S premium growth has been moderating over the past 12 to 18 months, and the firm expects surplus lines insurers to pursue more measured, opportunistic growth strategies in response to heightened competition.

Investment activity in the DUAE space reflects this shift in tone. Full acquisitions now represent a minority of transactions, with investors and carriers gravitating toward strategic partnerships and structured alliances that allow for targeted capital deployment without requiring full ownership, according to the report.

Many DUAEs are also restructuring how they source capacity, moving away from dependence on a single fronting carrier or reinsurer toward more diversified panel arrangements. AM Best attributed this shift partly to changes in reinsurer appetite since 2023, including shorter contract durations, higher attachment points, and more extensive data requirements. While panel diversification reduces the risk of disruption from any single partner’s strategic pivot, the report noted it also introduces operational complexity.

Authority Structures and Partnership Dynamics Evolve

DUAEs have steadily expanded the scope of authority they hold on behalf of carrier partners. In 2025, underwriting authority was granted in more than 75% of MGA contracts reviewed, and a slightly higher share of MGAs were empowered to handle claims compared with 2024.

The report noted that non-exclusive MGA contracts now account for the majority of MGA-produced premium, a pattern that has persisted since 2020, giving carriers greater flexibility to exit underperforming segments or adjust portfolios in response to deteriorating loss trends.

AM Best indicated that newer or less-capitalized MGAs may face particular difficulty navigating the current environment, while experienced MGAs with demonstrated track records are positioned to become more valuable partners as insurers allocate capacity more judiciously.

“The maturing MGA market will need greater discipline in building portfolios along with successfully adopting newer technologies to enhance workflow efficiency and improve responsiveness to emerging risks,” said Helen Andersen, industry research analyst, AM Best.

Obtain the full report here. &