MGA M&A Activity in a Softening Property/Casualty Market

The MGA market remains the most fragmented segment of the wholesale insurance distribution industry, making it attractive to strategic and capital partners looking to add to or diversify their existing MGA capabilities and portfolios.

Estimated MGA premium written by U.S. insurance companies rose roughly 16% year over year in 2025 compared to a 10% increase in the broader P&C sector, according to data from Conning, driven by increased utilization of MGAs by both traditional and fronting carriers, as well as the continued launch of new independent MGAs.

Fluctuating market conditions, however, are making buyers more disciplined, presenting new challenges and opportunities for MGA owners seeking exits.

M&A Outlook

Despite broader market uncertainty resulting from steep declines in public market valuations, potential rising interest rates, and ongoing political instability, we anticipate the buyer appetite for MGAs will remain strong in 2026 as the MGA model has proven its value to carrier partners.

In addition to ample buyer demand, MGA supply has grown dramatically over the last five years. Amwins estimates that more than 1,500 MGAs now write over $100 billion worth of premium. As owners of these firms seek liquidity for the businesses they have built, the supply of MGA acquisition opportunities will continue to be strong, so we don’t expect a slowdown in M&A volume in the near future.

While MGA valuations remain strong, the softening pricing market is causing buyers to rethink their acquisition targets. Five years ago, strong investment returns were easier to achieve as hard market conditions created what some industry insiders called the “golden age of E&S” and a pricing and organic growth tailwind that buoyed valuations. Now, however, organic growth is slower, prompting buyers to become more disciplined on valuation to achieve their target investment returns.

Buyers with existing expertise in the MGA space will be best positioned for success and have the most strategic synergies, including proprietary capacity sources which can de-risk an MGA acquisition and enhance its growth prospects. These players already have the operational playbook and carrier relationships needed to integrate acquisitions and generate accretive returns.

Independent MGAs and Capacity Structures

Another emerging trend is the growing strength of independent MGAs, which is now a larger segment of the MGA market than insurer-owned firms per Conning.

As MGAs separate from insurers, many are diversifying their capital strategies, securing multiple or diversified capacity sources versus relying on a single carrier, which can provide more certainty over the long term. Whole-account quota share arrangements have also emerged as a potential option, which allows platforms to place a portion of their portfolio into a single reinsurance structure rather than negotiating capacity on a per-program basis. Despite growing interest, however, only a handful of successful examples have emerged. Whole-account quota shares work only when carriers and/or fronts, investors, reinsurers, and MGAs are fully aligned on risk appetite, data, and economics. That means platforms must consider making difficult tradeoffs as they balance concentration risk with growth goals and overall returns.

Deal-making Considerations

Successful mergers require two-way communication and a structure that benefits both the buyer and seller. As buyers become more disciplined, they seek targets that offer sustained underwriting profitability, strong relationships with capacity providers, as well as niche expertise that can help them capture new markets.

Simultaneously, sellers need to be just as selective. They should discern which buyers are serious about partnering with their business and which have the capabilities they need to succeed post-closing through good times and tougher situations. These considerations may include accelerating distribution, offering unique capacity relationships, technology, and garnering strong commitments from existing capacity providers.

Sellers should avoid the temptation for a quick fix by trying to drive revenue quickly at the expense of long-term underwriting profit to drive a higher sale price and achieve better earnout performance. While doing so may seem financially worthwhile, buyers will see through the strategy. As competition for MGAs increases, long-term performance and expertise matter more to buyers than growth alone.

Tech Considerations

Sellers should understand that buyers no longer view technology as a competitive advantage for MGAs but as a cost of doing business. Carriers and capital partners expect full visibility into their portfolios and near-real-time data. MGAs with strong analytics and repeatable processes will secure capacity more easily.

Nassab is a vice president of M&A at Amwins.

Topics Mergers & Acquisitions Pricing Trends Insurance Wholesale Property Property Casualty Casualty