After several years of exceptional growth, MGAs are operating in a more challenging environment.
Softer market conditions, increasing competition and pressure on margins are making profitable growth harder to achieve. Yet despite these headwinds, the sector continues to demonstrate remarkable resilience, investing in businesses while maintaining impressive levels of productivity.
The report found the average MGA Rating slipped to 51.0%, down from 52.9% last year. While both profitability and growth eased, productivity remained resilient at 56.1%, supported by a 12.2% increase in average revenue per employee to more than £203,000. Staff costs also fell to 40.0% of revenue, underlining the sector’s continued focus on efficiency.
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Growth may have slowed, but it has certainly not stalled.
Aggregate revenues across the MGAs analysed increased by 8.0% to £1.2bn over the past year. The findings suggest the market is maturing rather than weakening, with firms increasingly focused on building sustainable, profitable businesses instead of simply chasing top-line growth.
This year’s research also reveals changing dynamics within the market.
Smaller MGAs emerged as the strongest-performing revenue band, while medium-sized firms experienced the largest decline after topping the rankings last year.
The results highlight how quickly fortunes can change in a market where agility, innovation and operational excellence remain critical competitive advantages.
The full report explores these trends in much greater detail, examining what is driving performance across the sector, how different segments of the market are responding to changing conditions, and what the latest data tells us about the future direction of the UK MGA market – as well as revealing this year’s cohort of MGA Gold Award winners.
We’ll be exploring these findings in more detail during our upcoming webinar, The New Rules of MGA Success, taking place on 13 July at 1pm.
Hosted by Insurance DataLab co-founder Dan King, the webinar brings together an expert panel featuring:
- Mike Keating, MGAA chief executive
- Ross Dingwall, Euna Underwriting managing director
- Tim Jones, MPR Underwriting managing director
- Matt Scott, Insurance DataLab co-founder
Together, they’ll discuss:
- The outlook for the UK MGA market and the trends shaping its future
- How the relationship between MGAs, brokers and capacity providers continues to evolve
- The growing role of data, analytics and technology in improving performance
- The impact of regulation and governance on future growth strategies
- Emerging opportunities across specialist and niche product lines
You can register for the webinar for free here.