IUA reports 25% increase in London company treaty business premiums – Reinsurance News

Recent figures from the International Underwriting Association (IUA) reveal a substantial increase in treaty reinsurance within the London company market for 2023, premiums surged to £10.889 billion, compared to £8.248 billion in 2022, marking nearly a 33% growth.

The upcoming London Company Market Statistics Report, due later this month, will offer an in-depth look at premium income for IUA members, broken down by placement type, business class, and geographic region.

A preliminary overview of reinsurance data, presented at the Monte Carlo Rendez-Vous, shows impressive growth.

The total for direct and facultative contracts written by London-based companies hit £32.106 billion in 2023, a 9% increase from £29.378 billion the previous year.

Treaty business expanded more rapidly, now making up 25% of the total market—a record high since the IUA began compiling data in 2010.

Additionally, the IUA tracks premium income from international or regional UK offices under the supervision of London company market operations.

For this “controlled business,” direct and facultative placements grew by 9%, from £4.455 billion to £4.850 billion. However, treaty business in this segment fell from £1.990 billion to £0.587 billion in 2023.

Nevertheless, the total treaty business for the London company market increased by over £1.2 billion, or 12%, rising from £9.238 billion to £11.476 billion.

Scott Farley, IUA Director of Communications, commented: “Strong growth has been a dominant feature of recent editions of the London Company Market Statistics Report and the theme continues this year. Many different classes of business continue to benefit from a strong pricing environment.

“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.”

The 2023 aggregate total of £10.889 billion for treaty business written by London companies marks a threefold increase in the market size since 2010, when the IUA’s first annual statistics survey reported treaty contracts valued at £3.216 billion.

The 2024 London Company Market Statistics Report, set for release later this month, will provide additional details on premium income, compare the sector with the Lloyd’s market, and include commentary based on feedback from contributing firms.