Three Things – Strategic Reshaping, MGA Growth & Reinsurance Market Stability

Hi Friends!

Autumn is in full swing, and the energy picked up as September begins and promises to be a busy season for insurance.

This week brought no shortage of headlines across insurance. From strategic divestments and IPO filings to MGA expansions and fresh reinsurance outlooks, the industry is showing both discipline and ambition as we move into the fall.

The fall conference season begins as well, with Rendez-Vous de Septembre taking place in Monte Carlo this weekend and the WSIA Annual Marketplace in San Diego next week. I will be with my friends at OAPSLO on Thursday for their Annual Meeting, continuing a ‘tradition’ of sharing insights and perspectives with the group.

Here are the three Things We Learned this week:

 [1]

Strategic Reshaping: Aon, Neptune, and Skyward Specialty

Aon is sharpening its focus with a $2.7B deal to divest the majority of NFP’s wealth business, including Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth, and related platforms to Madison Dearborn Partners. The move allows Aon to double down on its core insurance and retail brokerage businesses while capitalizing on strong investor appetite in wealth management.

At the same time, Neptune Flood surprised many with its IPO filing, signaling confidence in public markets and demonstrating that specialty insurers targeting hard-to-place risks — such as private flood — view scale and transparency as competitive advantages.

Rounding out the week, Skyward Specialty announced its first acquisition as a public company, buying London’s Apollo Group. The deal strengthens its international footprint and adds momentum to its “rule our niche” strategy, demonstrating how specialty players are looking abroad for targeted growth.

 [2]

MGA Growth and Reinsurance Capital Backing

The MGA segment continues to flex its growth muscles with capital, partnerships, and acquisitions. Ledgebrook Re launched under the leadership of seasoned executives, positioning itself as a fresh reinsurer built for today’s delegated underwriting model. Ryan Specialty raised $400M for a collateralized reinsurance sidecar. This move provides additional capacity for its MGA business and demonstrates how reinsurance vehicles are being utilized to drive specialty growth.

Penn-America made headlines by acquiring Sayata, an AI-enabled digital distribution marketplace that expands its commercial insurance reach and tech capabilities. Novum entered a strategic partnership with Steadfast Group to accelerate its U.S. presence. At the same time, Bain Capital struck a major distribution-focused deal with the acquisition of Jensten Group in the UK. Taken together, these moves underscore how MGAs are securing the capital and partnerships necessary to continue scaling in a competitive market.

 [3]

Reinsurance Market: Shifting but Stable

Several new reports shed light on the state of global reinsurance as we close out the first half of 2025. Gallagher Re estimated that alternative capital rose to $118 billion in H1, showing that investor appetite for ILS, cat bonds, and sidecars remains robust. Fitch revised its outlook for the sector to deteriorating, citing softer returns and increasing cat uncertainty, while S&P and Moody’s held a stable outlook but agreed that pricing has likely peaked and the pendulum is beginning to swing back toward buyers. The big picture: capital is returning, capacity is available, and the challenging market conditions of the past few years may be giving way to a softer cycle. All eyes now turn to the rest of this year’s cat season to see whether recent stability holds or if volatility returns.