Why investors are looking to Europe’s growing MGA market

As competition increases across the (re)insurance market, investors are looking harder for growth. Europe’s managing general agent (MGA) market is increasingly part of that conversation and seen as an area of opportunity.

At the Rendez-Vous de Septembre in Monte Carlo, Eloise Hurley Wellington, Head of European Programmes at Howden Re, and Sébastien Bamsey, Managing Director at Howden Capital Markets & Advisory,  joined The Insurer TV to discuss what’s attracting institutional capital to European MGAs – and how the market could develop from here.

Growth is becoming more valuable

The wider rating environment matters. As pricing softens across many areas of the market, finding businesses capable of generating attractive organic growth becomes more important.

European MGAs offer one such opportunity.

“The European market has got a lot of scope for growth still,” Sébastien said. "Compared to the more established US MGA sector, Europe remains relatively underdeveloped, creating opportunities for investors looking to participate in its next phase of expansion.

That reflects a broader shift already visible in the market. Investors with established US positions are looking for opportunities to expand, while others that missed the earlier stages of US MGA growth are considering whether Europe offers another entry point.

Europe doesn’t have to follow the same path

The US provides an obvious reference point for what a larger European MGA market could become. But that doesn’t mean Europe needs to replicate its development.

For Eloise, the ability to learn from the US experience is an advantage.

European MGAs can see what has worked, where challenges have emerged and where technology can help businesses move faster. That creates scope to build on an established model while adapting it to Europe’s different markets, distribution structures and opportunities.

The result is a market attracting attention from several directions: investors looking for growth, carriers considering new sources of distribution and underwriting expertise and MGAs themselves looking for capital to scale.

The opportunity is significant. Capturing it will depend on finding the right combination of underwriting discipline, specialist expertise, technology and capital.

Watch Eloise and Sébastien's full interview with The Insurer TV for more on investor valuations, changing carrier expectations and the impact of new entrants on the European MGA market.