Personal lines business accelerated itsgrowth rate for the third consecutive year to 3.9%, "which… is thefastest growth rate recorded for personal lines in the 11-yearhistory of the OGP survey," Kevin Stipe of Reagan Consulting saidin a press release. (Photo: iStock)

Independent agents and brokers have a lot to look forward to in2019. After closing the books on their best year since2014, Reagan Consulting's Organic Growth and Profitability(OGP) survey for the fourth quarter of 2018 shows "a convergence ofimpressive upward trends in each major line of business," KevinStipe, president of the firm, said in a press release.

OGP participants generated organic growth of 6.1% in 2018,surpassing the projected organic growth rate of 5% for the year.Growth was driven by continued increases in U.S. GDP and commercial pricing.For 2019, OGP participants are forecasting growth of 7%, whichwould be the highest growth rate since Reagan Consulting began itsquarterly OGP survey in 2008.

Related: 2019 Agent Study: Major business lines, sales goalsand more

Market growth

Employee group benefits was the channel's leading performer of2018, growing organically at a rate of 7.3%. This growth rate wasmore than 2 percentage points higher than last year's. Commerciallines' growth rate also increased by more than 2 percentage pointsfrom 2017, as the median firm grew its commercial property &casualty business by 6.5% in 2018.

Personal lines business accelerated its growth rate for thethird consecutive year to 3.9%, "which… is the fastest growth raterecorded for personal lines in the 11-year history of the OGPsurvey," Stipe said in a press release.

Buyer optimism of agent and broker performance and sellerconcerns of scale and internal perpetuation have fueled what Stipecharacterizes as a "frenzy" of mergers and acquisitions (M&A) in2018, much like 2017′s record-setting activity. Small agencieswhose owners are facing retirement without a succession plan arealso contributing to the increase in transaction count.

"Without a viable path to continued independence," theseagencies turn to an M&A transaction, said Stipe.

Related: Best practices for insurance agency exit andsuccession