Independent Insurance Channel Records Q2 Growth
Growth in the independent insurance channel increased 6.4% across all lines in the second quarter of 2019, according to management consulting firm Reagan Consulting. The firm’s quarterly Organic Growth and Profitability survey found that agents and brokers had their best second quarter since 2013.
The record-breaking quarter has impacted growth expectations for the year, with Reagan Consulting updating their full-year 2019 projections to a 7.0% growth, up from an estimate of 6.0% growth after the first quarter of the year.
Increases in commercial lines (6.4%), the benefits sector (5.5%), and personal lines (4.1%), as well as increases in premium pricing and large numbers of mergers and acquisitions, have all contributed to driving growth in the industry. Mark Crites, Vice President of Reagan Consulting, noted that 2017 and 2018 were record years for mergers and acquisitions and was optimistic about continued development in the channel.
“Even at record-high valuations, buyers can still complete accretive deals,” Crites said. “We see no slowdown in M&A activity for the foreseeable future.”
As the year continues, SLTX looks forward to monitoring similar increases in the surplus lines market. Following years of progress, the industry is hopeful for continued growth.