Posts Tagged ‘MGU’



March 7th, 2012

Guy Carpenter’s 7th Annual Specialty Insurance Program Issuing Carrier Survey, Part V, Reinsurance Purchasing, Acquisitions

Posted at 1:00 AM ET

Reinsurance Purchasing

Reinsurance continues to play an important role for program issuing carriers. Sixty-six percent of respondents to the survey this year indicated the use of both direct reinsurers and intermediaries, while 32 percent indicated their use of intermediaries exclusively. This is pretty much consistent with the survey results of 2009 and 2010.

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March 6th, 2012

Guy Carpenter’s 7th Annual Specialty Insurance Program Issuing Carrier Survey, Part IV, Operating Platform, Performance Management

Posted at 1:00 AM ET

Operating Platform

Carriers continue to maintain flexibility regarding their requirements for the services they expect their PA/MGA partners to perform and what they feel they need to control. Consistently, respondent carriers expect their PAs/MGAs to underwrite (93 percent), rate, quote, bind business (93 percent) and issue and service policies (86 percent). Most of the other services, even though not required or expected of PA/MGAs, are often performed by them, a third party, or in many cases, the carriers’ themselves.

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March 5th, 2012

Guy Carpenter’s 7th Annual Specialty Insurance Program Issuing Carrier Survey, Part III, Program Appetite

Posted at 1:00 AM ET

Program appetite reflects flexibility. PAs/MGAs, like most U.S. businesses, are struggling with a stagnant economy. As a result, a number of the program opportunities are smaller in size today than they were when we first conducted our survey in 2005. Carriers have needed to become more flexible with their program minimum premium requirements, their willingness to consider startup programs, their willingness to front and the territorial scope with which they will write business.

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March 1st, 2012

Poised for Growth: Guy Carpenter’s 7th Annual Specialty Insurance Program Issuing Carrier Survey, Part I

Posted at 1:01 AM ET

The Program Administrator and Managing General Agent (PA/MGA) market continues to be an important part of the overall insurance marketplace. When Guy Carpenter and Company (Guy Carpenter) conducted its first survey in 2005, little had been published about this exciting segment. Agencies, underwriters, reinsurance intermediaries and third party service providers such as claim administration firms, all were asking the same questions:

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November 11th, 2010

PAs and MGAs Identify Key Challenges

Posted at 4:38 PM ET
Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a part of the Marsh & McLennan Companies, today published the results of its yearly survey of the Program Administrators and Managing General Agents (PA/MGA) market.

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October 26th, 2009

MGA M&A Appetite Remains

Posted at 12:30 AM ET

Carl Bach, Managing Director and John Barrows, Vice President
Contact

Program administrators and managing general agents (PAs/MGAs) appear to be interested in making acquisitions. This year, 72 percent of participants in Guy Carpenter’s Fifth Annual Specialty Insurance Program Issuing Carrier Survey indicated an interest in growing through acquisition, up slightly (though not materially) from 70 percent in 2008. A mature segment of the insurance industry, this remains one of the few ways to accelerate top-line growth and capture market share.

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October 26th, 2009

Chart: MGA Acquisition Interest

Posted at 12:29 AM ET

chart_10_21_1

Program administrators and managing general agents (PAs/MGAs) appear to be interested in making acquisitions. This year, 72 percent of participants in Guy Carpenter’s Fifth Annual Specialty Insurance Program Issuing Carrier Survey indicated an interest in growing through acquisition, up slightly (though not materially) from 70 percent in 2008. A mature segment of the insurance industry, this remains one of the few ways to accelerate top-line growth and capture market share.

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October 26th, 2009

Chart: MGA Acquisition Types

Posted at 12:28 AM ET

chart_10_21_2

Fifty-nine percent of respondents to the survey would like to acquire other PAs/MGAs, and 44 percent would prefer to acquire carriers — with both categories up from 2008’s 54 percent and 39 percent, respectively. Interest in wholesalers has waned; 13 percent of respondents are targeting them this year, compared to 23 percent last year. Respondents considering acquiring third-party administrators have increased from zero last year to 5 percent this year.

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October 26th, 2009

Chart: MGA M&A Funding Sources

Posted at 12:27 AM ET

chart_10_21_3

The majority of respondents plan to use company funds to make acquisitions (56 percent, compared to 54 percent in 2008’s survey), though company stock is another popular way to finance acquisitions (23 percent). As a result of the worldwide financial crisis, the use of institutions — such as private equity and bank financing — has fallen sharply. Last year, 27 percent of respondents indicated an interest in working with private equity partners, with 8 percent listing banks as a financing source. This year, they garnered only 3 percent and 5 percent, respectively.

To download this chart, right-click on the image, and select “Save Picture As”. If you have any trouble, please e-mail us.

Click here to receive e-mail updates from GC Capital Ideas >>