Media Release 10 September 2024
IUA DATA SHOWS GROWTH IN LONDON COMPANY TREATY BUSINESS
Premiums up by 25% over past year
Treaty reinsurance written in the London company market grew by almost one-third in 2023, new figures from the International Underwriting Association (IUA) have revealed. The sector generated premiums of £10.889bn, up from £8.248bn in 2022.
This year’s London Company Market Statistics Report is due to be published later this month, analysing all premium income for IUA members by placement type, class of business and geographical origin. An advance preview of reinsurance data, revealed at the Monte Carlo Rendez-Vous, shows significant growth.
The total for direct and facultative contracts written by companies in London was £32.106bn in 2023, an increase of 9% on the previous year (£29.378bn). Treaty business, however, expanded at a much faster pace and now accounts for 25% of the overall market figure. This is the highest proportion for treaty recorded since the IUA 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 £4.455bn to £4.850bn. Treaties here fell from £1.990bn to £0.587bn in 2023. However, the overall London company market total for treaty business was still up by more than £1.2bn or 12% from £10.238bn to £11.476bn in 2023.
Scott Farley, IUA Director of Communications, said: “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 £10.889bn aggregate total for treaty business written by London companies, represents a tripling of the market’s size since 2010. The first edition of the IUA’s annual statistics survey showed treaty contracts worth an overall £3.216bn.
The 2024 London Company Market Statistics Report will be released on September 16. In addition to further detailed breakdowns of premium, it will also 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.
Ends
Contact:
Scott Farley
Director of Communications
International Underwriting Association
Tel: 0207 617 4449
Mobile: 07921 699 218
E-mail: scott.farley@iua.co.uk
Notes to Editors:
About the IUA
The International Underwriting Association of London (IUA) is the representative body for companies in London providing international and wholesale insurance and reinsurance coverage. Its mission statement is to secure an optimal trading environment for London insurance companies.