Data from the International Underwriting Association (IUA) shows a 25% rise in London company reinsurance treaty premiums over the past year, reaching £10.9 bn in 2023, according to BestWire.
Direct and facultative contracts written by London reinsurance companies totaled £32 bn in 2023, a 9% increase. Treaty business grew faster and now represents 25% of the total. This marks the highest proportion of treaty business since the IUA began collecting data in 2010.
The IUA also tracks premium income from overseas or regional U.K. offices, managed by London market operations. Direct and facultative placements rose 9%, from £4.5 bn to £4.9 bn.
Treaty placements decreased from £2 bn to £0.6 bn. The overall total for London company treaty business increased by £1.2 bn (12%) to £11.5 bn in 2023.
Since 2010, the aggregate treaty business written by London companies has tripled, growing from £3.2 bn to £10.9 bn in 2023.
Scott Farley, IUA’s director of communications, noted that strong growth remains a key feature of recent reports. He attributed this to a favorable pricing environment across various classes of business. Farley also highlighted that premium increases are driven by both rising insured asset values and targeted underwriting investments.
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
Scott Farley, IUA director of communications
The IUA now is working on a certification process for new advanced air mobility technologies, focusing on safety and data access to help London Market underwriters analyze risks effectively.
by Yana Keller
