Howden Reveals MGA Sale Valuations

Howden’s latest report on managing general agents (MGAs) provides fresh insight into valuation trends as the market expands across Europe.

UK leads European MGA growth

The United Kingdom remains the largest European market for MGAs, with gross written premium (GWP) projected at roughly £7.2 billion in 2025. That marks an increase of about 20 % from the 2024 level of £6.3 billion. Howden’s analysis notes that this growth outpaces comparable segments in the United States, where MGA premiums rose 7 % and the broader U.S. property‑and‑casualty market grew 5 %.

Beyond the UK, the study identifies the Benelux region as the next biggest source of MGA business, estimating premiums of €3.7 billion—around £3.2 billion. Italy follows closely with €3.3 billion in premiums. France and Germany trail the leaders, though specific figures were not disclosed.

Valuations hover around 15–16 × EBITDA

Howden Re’s “Filtered for Quality” study also examined recent sale transactions involving diversified specialty platforms. The data suggest that buyers are paying in the range of 15 to 16 times earnings before interest, taxes, depreciation and amortisation (EBITDA). This multiple reflects the perceived stability and growth potential of MGA operations, especially those that have diversified product lines and strong underwriting discipline.

Related: Landlords buy squatters insurance after renters’ rights act

European total MGA GWP is estimated at about £18 billion in 2025, representing a 15 % year‑on‑year increase. The upward trajectory is notable given the broader market’s slower expansion, and it highlights the appeal of MGAs to investors seeking niche exposure within the insurance sector.

While the analysis does not break down the exact number of transactions, it indicates that the 15–16 × EBITDA range is becoming a benchmark for negotiations. Buyers appear willing to pay a premium for platforms that demonstrate robust risk management, solid loss ratios, and the ability to generate recurring revenue streams.

One possible driver of these valuations is the ongoing shift toward specialty lines, which often require more tailored underwriting and can command higher margins. As insurers continue to outsource niche business to MGAs, the latter’s strategic importance grows, supporting higher transaction multiples.

The valuation range aligns with broader private‑equity trends in the insurance space, where investors seek steady cash flows and opportunities for operational improvement. This context helps explain why MGAs, despite being relatively small compared with traditional insurers, attract sizable interest.

Related: Maximize Your Profit: 5 Expert Tips for Selling Your Business

From a practical standpoint, sellers of MGA assets can expect offers that reflect both current earnings and future growth potential. Buyers, on the other hand, must assess whether the implied multiples are justified by the underlying portfolio quality and market conditions.

Overall, the Howden data paints a picture of a market that is expanding at a healthy pace while also becoming more attractive to capital seekers. The combination of rising premiums and solid valuation multiples points to a sector that is likely to remain a focal point for investors in the coming years.

Investors are watching closely.