Sunday Scoop: Tracy's Treasure Trove/MGAs Are Stretching the Soft Pricing Cycle

研报英文原文证据摘录

Sunday Scoop: Tracy's Treasure Trove/MGAs Are Stretching the Soft Pricing Cycle

May 24, 2026

Anecdotal Example of MGA Push Into Casualty

●Ledgebrook is a casualty MGA only backed by fronting carriers MS Transverse

(GL, excess), Obsidian (professional lines) and to a lesser extent Tokio Marine.

Outside ACGL, obscure reinsurers that are just capacity players reinsure MS

Transverse. Without attribution, we heard that Ledgebrook is quoting risks well

below market rates.

○From our understanding, ACGL gets comfortable with its exposure

through structuring (i.e. loss corridors), meaning less effective

reinsurance/more risk retained by the cedent.

●Obsidian's unprofitable loss ratios — 282% in 2023, 127% in 2024, 88.7%

in 2025 — evidence of a structural misalignment of incentives inherent to

the fronting/MGA model. Abundant reinsurance capacity allows for negligent

behavior across the "value" chain.

MGA Growth Play By Lines of Business

Most MGAs play in the personal line pace and have a diversified footprint in

commercial lines. NAIC note 19 reporting often doesn't distinguish LOB.

2025 Industry MGA Premiums by LOB

Source: Wolfe Research, S&P Capital IQ Pro, NAIC Note 19

Excluding crop

Exhibit 1 - 2025 MGA Premiums (ex- Crop) by Carrier

$ in bn

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00

Affiliated Unaffiliated Affiliated Unaffiliated Affiliated Unaffiliated Affiliated Unaffiliated Affiliated Unaffiliated Affiliated Unaffiliated

AIG ACGL CB SKWD TRV WRB

A&H Commercial Auto Surety Property Property & liability Casualty Professional liability Personal Lines Pet Insurance

Source: Wolfe Research, S&P Capital IQ Pro, NAIC note 19

MGAs: Growth machine for brokers and risky proposition for carriers

●Unaffiliated MGA premiums surpass affiliated.

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