Differences mean success for MGAs

As managing general agents continue to flourish, John Holm, head of MGA Investments, Asta, explains to Monte Carlo Today what it takes for an MGA to succeed in this market.

Managing general agents (MGAs) in the London Market are thriving and the climate remains perfect for talented underwriters who can differentiate themselves and have a good business plan to prosper, said John Holm, head of MGA Investments at Lloyd’s managing agent Asta.

A study of the results of the top 60 MGAs in London, carried out by Intelligent Insurer magazine in conjunction with Asta earlier this year, showed that once the data was cleaned to remove some major anomalies, the overall turnover of the top 60 MGAs increased by almost 5 percent year-on-year, while the market’s overall profitability increased by almost 18 percent.

Holm said that the conditions remain ripe for MGAs to form and prosper at the moment—but only if the entity can tick certain key boxes that will help ensure success.