Conning Releases 2025 Fronting Study: Fronting Model Matures Amid Growth, Challenges, and Market Shakeout

HARTFORD, Conn., June 26, 2025 /PRNewswire/ -- Conning has released its fourth annual report on the fronting insurance market, Fronting Model Is Here to Stay … With Some Changes, offering a comprehensive analysis of one of the fastest-growing and most dynamic sectors in the property-casualty insurance industry. The report examines the evolution of fronting companies, their role in MGA distribution, and their growing importance to reinsurers.

"The fronting model is no longer in its infancy—it's maturing rapidly and adapting to a more complex and competitive environment," said Alan Dobbins, Director at Conning, Inc. "In 2024, gross premiums written by fronting companies grew by 26%, reaching $19.6 billion. But despite this growth many companies remain concentrated by line of business, customer and reinsurance support, and the market is beginning to stratify."

The study highlights several key developments:

• Fronted premiums now represent more than 20% of total MGA-produced premiums and nearly 11% of the E&S market.
  
  
• The direct loss ratio for the fronting universe improved slightly in 2024 although the sector is plagued by adverse loss development.  Meanwhile, the direct expense ratio rose, signaling rising operational costs.
  
  
• Reinsurer panels are shifting, with collateralized markets gaining share and certain traditional markets reducing their exposure to fronting.
  
  
• Premium retention declined slightly in 2024, contrary to expectations, and leverage increased as companies scaled up.
  
  
• Several fronts disclosed the impact of discontinued business, an increasing challenge affecting growth and profitability trajectories.

"The fronting market is transitioning from a race for scale to a race for operational excellence," Dobbins added. "As MGAs become more discerning and reinsurers demand more rigor, fronting companies must invest in infrastructure, governance, and underwriting discipline to remain competitive."

The report also explores structural challenges facing the sector, including concentration risks, differentiation difficulties, and limited exit options for PE-backed fronts. Despite these hurdles, Conning sees a path forward for fronting companies that can demonstrate sustainable profitability and operational maturity.

For more information on the Fronting Model Is Here to Stay … With Some Changes, or to request a copy of the full report, please visit www.conning.com or contact (888) 707-1177.

ABOUT CONNING

Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe, and North America. Conning is part of the Generali Group.

Media Contact
Alyssa Gittleman
Conning
860-299-2288
alyssa.gittleman@conning.com

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SOURCE Conning, Inc.