Rising competition for managing general agents


In recent years, private equity (PE) firms have shown a growing appetite for investing in MGAs within the insurance industry. What makes MGAs particularly appealing to these investors is their unique business model: They don’t require heavy capital outlays or large balance sheets, yet they offer impressive scalability and a steady stream of recurring, fee-based revenue. This combination translates into high-margin opportunities that are hard to ignore. As more PE players enter the fray, competition for quality MGA assets has intensified, pushing valuations higher—so much so that it’s now common to see deals closing at double-digit EBITDA multiples.

The evolution of private equity investors in insurance

Looking back, private equity’s involvement in the insurance sector was once largely centered on traditional life and annuity carriers or on acquiring distressed property and casualty (P&C) assets. For instance, Apollo made waves with its creation of Athene as a consolidation platform in the life and annuity space, while firms like Carlyle homed in on runoff books—essentially, portfolios of insurance policies that were no longer actively sold but still required management.

But the landscape began to shift meaningfully around 2015. Private equity firms started to look beyond these capital-intensive, often slow-growth segments and instead set their sights on distribution-focused, asset-light businesses, such as insurance brokers, emerging insurtech companies, and managing general agents. This evolution in strategy signals a broader change in mindset: Rather than simply seeking out stable, long-term sources of capital, PE investors are now prioritizing businesses that offer rapid growth and robust profit margins.

While insurance brokerage deals remain a staple in the market, their valuations have largely plateaued as consolidation has matured and the biggest players have achieved significant scale. In contrast, the appeal of MGAs has only grown stronger. Major private equity firms are actively pursuing platform-based roll-up strategies, snapping up MGAs to build larger, more diversified portfolios. Today, private equity ownership accounts for more than 30% of all MGA entities in the US, which is a clear sign of just how central these businesses have become in the PE playbook.

The structure and role of MGAs

While MGAs do perform many of the core functions of an insurer, they typically do so without actually taking on the insurance risk themselves. This allows them to operate with agility and focus, often zeroing in on niche segments of the P&C market.

Within the broader insurance value chain, MGAs are positioned squarely between carriers and brokers. They act as outsourced partners for underwriting and product development, helping carriers reach specialized markets or develop tailored solutions that might otherwise be out of reach. Depending on their ownership structure, MGAs fall into two main categories:

• Affiliated MGAs: These are majority-owned by a single carrier and tend to serve primarily, or even exclusively, that carrier’s needs.
• Unaffiliated MGAs: These operate independently or are minority-owned, and they typically work with a range of different carriers, offering their expertise across the market.

Currently, affiliated MGAs make up about 45% of the market by premium volume. However, there’s a noticeable trend toward spinning off or acquiring independent MGAs, as both carriers and investors recognize the value and flexibility these unaffiliated entities can bring to the table.

Looking forward


MGAs have emerged as a distinctive and highly attractive asset class for private equity firms aiming to capture insurance premium growth—without the burdens of regulatory capital or direct risk exposure. But as the insurance landscape continues to evolve at a rapid pace, both MGAs and their investors must remain vigilant and adaptable. Navigating new market dynamics, regulatory changes, and technological advancements will be crucial for sustained success.

Those who approach this space with a proactive mindset and leverage their expertise in platform building and roll-up strategies stand to unlock significant value in a dynamic, fast-growing market. Whether you’re looking to refine your investment thesis, benchmark your strategy, or simply stay ahead of the curve, the full report offers comprehensive insights to inform your next move.