Insurance brokers eye stable growth in 2025: S&P Global Ratings

Non-brokers will face more variable performance but likely to withstand headwinds.

The outlook for insurance brokers and servicers remains stable, with strong revenue and earnings growth expected in 2025, despite moderating tailwinds, S&P Global Ratings said. 

Whilst stabilising insurance rates and subdued inflation will slow organic growth compared to recent years, most rated brokers are expected to maintain market share in an increasingly sophisticated industry.  

Non-brokers will face more variable performance but are likely to withstand market headwinds due to steady retention, product and market expansion, and disciplined expense management.

The industry will also remain highly acquisitive, following three major deals in 2024, with continued inorganic growth expected.  

Financial leverage remains a key constraint, as issuers have not scaled back despite higher capital costs. However, gradually easing interest rates should provide some relief, improving coverage cushions relative to downgrade thresholds.