Treaty reinsurance business in the London company market expanded by more than 10% last year, according to data from the International Underwriting Association (IUA), the trade body representing companies operating in the London insurance market.
Treaty premiums now make up 27% of the market, compared to a 25% share in the previous year. The IUA notes that this is the highest proportion for treaties recorded since it began publishing company market statistics in 2010.
The IUA’s London Company Market Statistics Report for 2024, which provides a full analysis of premium income by placement type, business class, and geographical origin, is due later this month. An early look at reinsurance data was shared at the Monte Carlo Rendezvous.
The figures indicate that growth in treaty business helped offset a small decline in direct and facultative contracts written by London companies. Direct and facultative premiums amounted to £31.789bn in 2024, down 1% from £32.106bn in 2023, the IUA reports.
The IUA also tracks premiums from overseas and regional UK offices that are managed under London company market oversight. For this “controlled business,” direct and facultative placements rose from £4.850bn to £4.932bn, while treaty business declined slightly from £0.587bn to £0.567bn.
Scott Farley, IUA Director of Communications, commented: “Our latest data shows that the growth rate for reinsurance treaties in the London company market continues to outstrip that of the sector as a whole.
“Overall premium increases in 2024 are much more modest than in recent years as inflationary pressures in claims costs have eased. IUA members, however, remain optimistic about future business prospects with plans in place to grow core business classes and monitor developing opportunities. Strong retention rates for existing clients were reported this year by many firms.”
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