MGAs have been a particularly attractive target for investors. These businesses typically specialize in a niche area (e.g., specialty fire coverage or fleet insurance for a large delivery organization) that requires depth. MGAs are known for creating value through underwriting excellence and their specific views of risk and risk profitability. (Credit: Adobe Stock)
Along with deal-making across a number of industries, merger and acquisition deal volume in the insurance space slowed over the past several years. According to S&P Global Market Intelligence data, the number of private equity and venture capital deals, in particular, dropped 28% in 2023, as investors grappled with high interest rates. However, over one-half of the total 2023 deal value for PE-backed insurance transactions involved brokers.
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