Treaty reinsurance in the London company market grew by nearly one-third in 2023, according to new data from the International Underwriting Association (IUA). The sector's premiums reached £10.889 billion, up from £8.248 billion in 2022.
The figures, part of the IUA’s upcoming London Company Market Statistics Report, were previewed at the Monte Carlo Rendez-Vous. The preliminary reinsurance data highlighted significant growth in the sector.
Total premiums for direct and facultative contracts written by London companies stood at £32.106 billion in 2023, a 9% increase from £29.378 billion in 2022.
Treaty business grew at a faster pace, accounting for 25% of the overall market, the highest proportion since the IUA began tracking this data in 2010.
The IUA also tracks premium income generated by overseas or regional UK offices that fall under the management of London market operations. For this "controlled business," direct and facultative placements saw a 9% increase, rising from £4.455 billion to £4.850 billion.
However, treaty reinsurance in this category fell sharply, dropping from £1.990 billion to £0.587 billion in 2023. Despite this decline, the overall total for treaty business in the London company market still rose by more than £1.2 billion, up 12%, from £9.238 billion to £11.476 billion.
IUA director of communications Scott Farley (pictured above) noted the continuing trend of strong growth in the London Company Market Statistics Report. He added that multiple classes of business are benefiting from favorable pricing conditions.
“Whilst indexation of premium due to increases in insured asset values is clearly important, companies are also reporting further selected growth where they have made significant underwriting investments,” Farley said.
The £10.889 billion total for treaty reinsurance in 2023 represents a significant increase since 2010, when the IUA first began collecting data on the sector. That year, treaty contracts accounted for £3.216 billion in premiums.
The full 2024 London Company Market Statistics Report will include detailed breakdowns of premium data, a comparison with the Lloyd’s market, and commentary from contributing firms. The report is expected to be released later this month.
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