Gallagher Re, a global reinsurance brokerage and advisory firm owned by Arthur J. Gallagher & Co., reported an 18% year-over-year increase in premiums assigned to the reinsurance market across its underwriting portfolio in 2025, reflecting continued demand for reinsurance capabilities from the expanding U.S. managing general agency (MGA) industry.
The research results were published in Gallagher RE 2026 MGA Market Reportalso pointed to continued premium growth, improving profitability and evolving changes in rated and unrated capital supporting MGA’s plans.
Gallagher Re estimates that the U.S. MGA market will generate more than $125 billion in premiums in 2025, growing around 10%, including unreported business in NAIC Note 19. Across its plan carrier portfolio of 25 insurers, total written premiums increased 14% to $33.1 billion.
While this points to a slowdown in the annual growth rate of 22.1% to 30% between 2021 and 2024, Gallagher Re noted that maintaining this momentum is becoming increasingly challenging as premium volumes grow. Even so, the company estimates MGA now accounts for approximately 12.5% ​​of the U.S. property and casualty insurance market, solidifying its position as an increasingly important distribution channel for underwriting expertise and capabilities.
Gallagher Re also highlighted the growing scale of leading scheme insurers, with State National and Transverse together accounting for 22% of general insurers, while 13 of the 25 insurers will each exceed $1 billion in premiums during 2025. The report suggests that growing collaboration between traditional insurers and MGAs will continue to support market expansion, describing some insurers’ activity as being driven by a “fear of missing out” mentality.
Looking ahead, Gallagher Re expects MGA premium growth to remain around 10% in 2026, assuming stable economic conditions, which would add another $3 billion in premiums to its planned carrier portfolio.
On the underwriting performance front, Gallagher Re reported that while program carrier combined costs continued to record a total combined ratio above 100%, net combined ratios improved to the low 90s between the first quarter of 2024 and the first quarter of 2026, after accounting for prepaid and other fee income. This compares to a net combined ratio of 102% to 113% in the 2022-2023 period.
The report also highlights the continued expansion of reinsurance utilization. Gallagher Re said its carrier complex transferred $21.2 billion in premiums to the reinsurance market in 2025, including significant allocations to captive reinsurers. This is an increase of 18% compared to the end of 2024 and an increase of 59% since 2023, underscoring the continued availability of reinsurance capital for MGA’s business.
The five largest reinsurance counterparties accounted for $4.8 billion in premiums, equivalent to 22.7% of all ceded premiums in the complex, while the top 10 reinsurance counterparties accounted for 34%, Gallagher Re data showed. In 2025, Lloyd’s remains the largest source of reinsurance capital for North American MGAs, assuming premiums of $1.7 billion, accounting for approximately 7% of total recoverables.
Gallagher Re reported that Munich Re and Hannover Re had the strongest year-on-year growth among the top ten reinsurers, assuming premiums increased by 74% and 84% respectively. Allianz and Lloyd’s also rose 49% and 51% respectively. Collectively, these four organizations account for 82% of assumed premium growth among the top 50 reinsurers in Gallagher Re’s combined rankings.
Munich Re’s growth comes after several consecutive years of declining participation between 2022 and 2024, while Hannover Re’s MGA premiums nearly doubled in a year, the report noted. Longtail Re also saw significant increases in assumed premiums, while Swiss Re and ICW saw the largest decreases in dollar terms.
Gallagher Re also noted that front-loaded carriers are gradually moving toward greater use of unrated reinsurance capital. While highly rated balance sheets continue to dominate, with eight of the ten largest reinsurers holding AM Best ratings of A+ or above, reports indicate that program carriers are increasingly incorporating unrated capital into their reinsurance structures.
According to Gallagher Re, rated counterparties continue to provide 65% of assumed MGA premiums and 71% of reinsurance recoverables by the end of 2025, leaving 35% of premiums and 29% of recoverables backed by unrated reinsurers.
Gallagher Re noted that Arthur J. Gallagher’s captive risk management subsidiary Artex remains one of the top 10 MGA reinsurers, ranking 10th with $433 million in assumed premiums. However, the report highlights TopSail as the largest unrated balance sheet, assuming premiums of $619 million and reinsurance recoverables of nearly $1 billion. West Bay Re, Roosevelt Re and Longtail Re have also expanded their operations and expect premiums to reach US$1.1 billion in 2025. Other notable players include Altamont Capital, Northern Re and the newly formed Fractal Re agency backing the CRC.
Gallagher Re concluded that while the increasing use of unrated capital is expanding the capacity available to MGAs, it is also increasing capital requirements for front-end carriers. As full-account quota share arrangements continue to expand in 2026 to include share arrangements backed by unrated capital, the report suggests that insurers and reinsurance buyers will need to balance attractive underwriting economics with shareholder equity return expectations. Gallagher Re noted that in some cases MGAs may need to accept lower commission levels to offset the additional capital costs borne by program operators.
The company added that all data relates only to the aggregate of its scheme underwriters and should not be interpreted as representing the total premiums borne by individual reinsurers in the wider market, as many MGAs continue to do business with larger-rated reinsurers.
