2024 ends with 9% organic growth rate
Brokers closed out 2024 with a solid 9% organic growth, continuing a four-year trend of strong performance, according to Reagan Consulting’s Growth & Profitability Survey (GPS). The sustained momentum has fueled optimism for 10% organic growth in 2025, the highest projection since Reagan began tracking growth expectations in 2010.
“For the first time in GPS history, Commercial, Personal and Benefits Lines all achieved more than 7% median organic growth, balancing success in 2024 across all lines of business,” says Harrison Brooks, Reagan Consulting partner.
Growth Across All Lines of Business
Personal Lines led the way with 9.2% growth in Q4-2024, marking the first time it has outperformed other lines in year-end growth since the study’s inception.
However, recent catastrophic losses from Hurricanes Helene and Milton, with damage estimates exceeding $100 billion, are beginning to impact Personal Lines rates. Additionally, Southern California wildfires are expected to add further pressure on loss ratios.
“Carriers are reassessing their risk appetite, potentially limiting available capacity,” said Harrison Brooks, partner at Reagan Consulting. This gives brokers the opportunity to help their clients and other insureds navigate the market, rebuild lives, and review their future insurance coverage.”
Commercial and Employee Benefits Performance
Commercial Lines growth slowed slightly from 10.9% in 2023 to 8.3% in 2024, as premium moderation took hold despite a seven-year hard market. According to the Council of Independent Agents and Brokers, Q3-2024 premiums for Commercial accounts of all sizes increased by 5.1%.
Employee Benefits grew at 7.6% in Q4-2024, marking its highest year-end growth in 16 years. Benefits profitability also increased, reversing a previous downward trend. The sector’s strong performance was largely driven by a continued rise in employer-sponsored health insurance costs, with Benefits premiums climbing 6.7% for the second consecutive year.
Broker Profitability Holds Strong
Despite challenges from natural disasters and increasing loss ratios, broker profitability remained steady at approximately 24% EBITDA margins—the highest level in 17 years. However, a decline in 2024 contingent, bonus, and override income as a percentage of revenue was noted.
“Brokers felt the impact of high carrier loss ratios, but they maintained strong margins by keeping staff levels stable and leveraging technology more efficiently,” Brooks noted.
Looking Back, Looking Ahead
With Personal Lines leading the way for the first time since the GPS study’s launch in 2008, multi-line brokers appear well positioned to navigate market cycles. Looking ahead, brokers anticipate another strong year, with projections for 2025 organic growth reaching 10%.
“Double-digit organic growth is becoming the expectation rather than the exception for today’s industry-leading brokers,” Brooks said.
As the industry adapts to shifting market conditions, brokers remain focused on resilience and strategic adaptation to maintain their strong trajectory into 2025.
