Treaty reinsurance premiums in London corporate market up 32% in 2023: IUA

Reinsurance written in the London corporate market grew by almost a third in 2023, with the sector generating premiums of 10.889 billion pounds ($14.2 billion), up from 8.248 billion pounds ($10.8 billion ) in 2022, according to the International Underwriting Association. (IUA).

Total direct and discretionary contracts awarded by London companies were £32.106 billion ($42 billion) in 2023, up 9% from the previous year (£29.378 billion). However, treaty business has expanded at a much faster rate and now accounts for 25% of the total market figure, which the IUA said was the highest proportion of treaties on record since the association began collecting dates in 2010.

IUA research also measures premium income recorded in overseas or UK regional offices but subject to the oversight and management of the firm’s London market operations. For this “controlled business”, direct and discretionary placements also increased by 9%, from £4.455 billion ($5.8 billion) to £4.850 billion ($6.3 billion). Deals here fell from £1.99 billion ($2.6 billion) to £587 million ($767.6 million) in 2023. However, the company’s total London market for business by treaties rose by more than £1.2bn ($1.6bn) or 12% against sterling. 9.238 billion (US$12.1 billion) to £11.476 billion (US$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.

“While premium indexation due to increases in insured asset values ​​is clearly important, companies also report further selected growth where they have made significant underwriting investments,” he added.

The 2023 total of £10.889 billion for treaty business written by London-based companies is a tripling of the market size since 2010, when the first edition of the IUA’s annual statistical survey showed treaty contracts totaling £3.216 billion of pounds sterling.

This year’s London-based firm’s market statistics report is due to be published later this month, looking at all premium income for IUA members by placement type, business class and geographic origin. An early preview of reinsurance data given at the Rendez-Vous in Monte Carlo shows significant growth. When the full report is released, the IUA said, it will also include a sector comparison with the Lloyd’s market and market commentary compiled from feedback from contributing firms. Copies will be downloaded free of charge from iua.co.uk/statistics.

The IUA is the representative body for London-based companies offering international and wholesale insurance and reinsurance.

Source: International Underwriting Association

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

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Trends Pricing Trends Reinsurance London