Treaty Reinsurance Premiums in London Company Market Grew by 32% in 2023: IUA

Treaty reinsurance written in the London company market grew by almost one-third in 2023, with the sector generating premiums of £10.889 billion (US$14.2 billion), up from £8.248 billion ($10.8 billion) in 2022, according to the International Underwriting Association (IUA).

The total for direct and facultative contracts written by companies in London was £32.106 billion ($42 billion) in 2023, an increase of 9% on the previous year (£29.378 billion). Treaty business, however, expanded at a much faster pace and now accounts for 25% of the overall market figure, which the IUA said is the highest proportion for treaty recorded since the association began collecting data in 2010.

The IUA’s research also measures premium income written in overseas or regional UK offices, but subject to oversight and management by London company market operations. For this “controlled business,” direct and facultative placements were also up 9% from £4.455 billion ($5.8 billion) to £4.850 billion ($6.3 billion). Treaties here fell from £1.990 billion ($2.6 billion) to £587 million ($767.6 million) 2023. However, the overall London company market total for treaty business was still up by more than £1.2 billion ($1.6 billion) or 12% from £9.238 billion ($12.1 billion) to £11.476 billion ($11.5 billion) in 2023.

“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,” according to Scott Farley, IUA Director of Communications.

“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,” he added.

The 2023 £10.889 billion aggregate total for treaty business written by London companies, represents a tripling of the market’s size since 2010, when the first edition of the IUA’s annual statistics survey showed treaty contracts worth an overall £3.216 billion.

This year’s London Company Market Statistics Report is due to be published later this month, analyzing all premium income for IUA members by placement type, class of business and geographical origin. An advance preview of reinsurance data was provided at the Monte Carlo Rendez-Vous, shows significant growth. When the full report is released, IUA said, it also will include a comparison of the sector with the Lloyd’s market and a market commentary compiled from feedback submitted by contributing firms. Copies will be free to download from iua.co.uk/statistics.

The IUA is the representative body for companies in London, which provide international and wholesale insurance and reinsurance.

Source: International Underwriting Association

Photograph: A general view of the skyline of the financial district, is seen by the River Thames, in London, on Friday, Nov. 4, 2022. (AP Photo/Kin Cheung)

Topics Trends Pricing Trends Reinsurance London