The US managing general agent (MGA) sector ceded US$21.2 billion to reinsurers in 2025, up 18% from 2024 and 59% above 2023 levels. Gallagher Re's 2026 MGA Market Report tracked 25 programme carriers recording gross written premium of US$33.1 billion, up 14% for the year. Total estimated MGA market premium exceeded US$125 billion, representing approximately 12.5% of US property and casualty premium.
The figures confirm secular momentum in the MGA sector, with traditional carriers increasingly adopting MGA partnerships. Thirteen of the 25 programme carriers wrote over US$1 billion in gross written premium in 2025. Growth is expected to remain at approximately 10% in 2026 and could add a further US$3 billion to the programme carrier composite.
Of the top 50 reinsurers in the composite, four providers accounted for 82% of the year's increase in assumed MGA premium. Munich Re grew its MGA exposure by 74% after three consecutive years of reductions between 2022 and 2024. Hannover Re posted an 84% increase, with Allianz and Lloyd's growing 49% and 51%, respectively.
Lloyd's remained the top reinsurer by premium volume, with US$1.7 billion assumed in 2025 and representing 8% of the composite's gross recoverables. The top five reinsurers by premium assumed US$4.8 billion combined, or 22.7% of total market premium, while the top 10 assumed 34% of the total. Artex, the captive risk management subsidiary of AJ Gallagher, held the 10th position at US$433 million of assumed premium.
A distinct structural shift is the growing share of unrated counterparties in the MGA reinsurance market. Programme carriers still source 65% of MGA premium from rated balance sheets, with 71% of reinsurance recoverables at year-end 2025 attributable to rated providers. The remaining 35% of assumed premium and 29% of recoverables come from unrated counterparties.
TopSail Re is the largest unrated balance sheet in the composite at US$619 million of assumed premium, ranked fifth overall. Gallagher Re noted that as unrated capital supports leveraged carrier balance sheets, programme carriers face additional capital charges and pressure on returns. In some cases, MGAs may be required to accept more favourable commissions to compensate carriers for those capital charges.
Programme carriers ceded 64% of non-affiliate gross written premium to reinsurers in 2025, down from rates of 74% to 77% between 2022 and 2024. The decline indicates that carriers are retaining more premium, supported by whole account quota shares and insurance-linked securities partnerships. Net combined ratios held in the low 90s from Q1 2024 through Q1 2026, recovering from the 102% to 113% range of 2022 and 2023.
Composite surplus grew 16.5% in 2025, with total surplus rising US$1.5 billion (13.9%) and net income increasing by US$92 million, or 9.2%. Five programme carriers exceeded 40% premium growth, led by Obsidian at 64%, Concert at 60%, Skyward at 48%, Transverse at 47%, and Accelerant at 40%. State National remained the dominant carrier at US$4.2 billion of gross written premium, with Transverse adding the largest absolute increase at US$931 million.
Private equity remains active in the MGA and fronting carrier market, with ownership stakes representing a majority of existing carriers' capital. Obsidian's acquisition by Protective in April 2026, a US subsidiary of Japan's Dai-ichi Life, may establish a pricing benchmark for MGA M&A activity. European and Asian insurance entities and asset managers were identified as showing increased appetite for MGA assets, according to Gallagher Re.
