Howden Re has released a new report positioned as the first of its kind to provide a pan-European analysis of the managing general agent (MGA) market.
While data on MGA activity in the United States is readily available, European markets have lacked comparable clarity due to inconsistent definitions, varied regulatory frameworks, and operational complexity.
Howden Re’s analysis identifies a European MGA ecosystem with over 650 entities and approximately €18 billion in gross written premium in 2024, growing at a compound annual growth rate of around 23% over the past five years.
According to the report, MGAs in Europe are increasingly utilizing artificial intelligence tools for risk triage, as well as proprietary pricing technology and API-integrated claims systems. These tools are enabling more scalable risk selection and operational efficiencies.
Underwriting talent is moving toward these models, drawn by greater autonomy and the potential for entrepreneurial returns.
Stephen Greener, CEO of Howden Re programs, said the report aims to democratize data and insights across the European MGA sector.
“The market has evolved dramatically over the past two decades with all signs pointing to continued growth and innovation,” Greener said. “Our findings confirm that MGAs are a central force in insurance distribution and product development across Europe. This report is designed to equip both carriers and MGAs with the insight needed to navigate and lead that transformation.”
The report highlights the role of MGAs in developing new product lines, particularly in areas such as cyber, ESG-related risks, financial lines, and parametric insurance. These next-generation MGAs are building portfolios that aim to be both scalable and profitable, with reported loss ratios that exceed those of traditional carriers.
Howden Re also notes that valuation multiples for MGA platforms are ranging from 9x to 18x EBITDA. These multiples are attributed to the capital-light and data-centric nature of MGA operations, which resemble the economics of software-as-a-service models.
As investor interest in the MGA space increases, the report points to an opportunity for fronting carriers to step in as demand for capacity rises faster than the supply of insurance paper. This dynamic is creating room for hybrid capital structures and cross-border expansion.
Despite these growth opportunities, the report cautions that execution will depend on local expertise. Regional regulatory knowledge, distribution capabilities, and disciplined underwriting are identified as key factors in determining success.
Broader market conditions may further shape the trajectory of MGA development in Europe. According to Howden's 2025 report “Past the Pricing Peak,” supply conditions in both commercial insurance and reinsurance have improved over the last year.
Increased capacity has led to more competition in certain classes of business, a factor that may influence MGA strategies and partnership dynamics.
The evolving risk landscape also plays a role. Howden's report on credit and political risk insurance (CPRI) indicated a 33% rise in demand for political risk cover, driven by global trade disruptions and economic volatility.
While underwriting performance in the CPRI space has been strong, capacity expansion has been limited. This context may inform MGA product development, especially in markets facing geopolitical uncertainty.
As the European MGA market develops further, Howden Re notes that sustained growth will rely on building long-term partnerships, adapting to regulatory environments, and accessing flexible capacity solutions.
The ability of MGAs and carriers to collaborate on data-driven underwriting and navigate regional complexities will be central to maintaining competitiveness in a shifting risk landscape.
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