Treaty Reinsurance Market is Growing, Says IUA

Treaty reinsurance written in the London company market grew by more than 10% last year, new data released by the International Underwriting Association (IUA) has shown. The sector recorded total premiums written in London of £11.985bn in 2024, up from £10.889bn the previous year.

Treaty premiums now represent 27% of the market total, compared to a 25% share in 2023. This is the highest proportion for treaties recorded since the IUA began publishing company market statistics in 2010.

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 has been issued at the Monte Carlo Rendez-Vous.

The figures show that the rise in treaty business offset a slight fall in direct and facultative contracts written by companies in London. The latter totalled £31.789bn in 2024, dropping by 1% from £32.106bn the year before.

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 increased from £4.850bn to £4.932bn in 2024, while treaties dripped slightly from £0.587bn to £0.567bn.

Scott Farley, IUA Director of Communications, said: “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.”