Treaty reinsurance written in the London company market increased by more than 10% in 2024, according to new data from the International Underwriting Association (IUA). Total treaty premiums written in London reached £11.985 billion, up from £10.889 billion in 2023.
Treaty premiums now account for 27% of the London company market, compared to a 25% share the previous year. This marks the highest proportion for treaty business since the IUA began publishing company market statistics in 2010.
The association’s annual London Company Market Statistics Report, which will be published later this month, will provide a detailed analysis of premium income for IUA members by placement type, class of business, and geographical origin.
The IUA data shows that the increase in treaty business offset a slight decline in direct and facultative contracts written by London companies. Direct and facultative premiums totaled £31.789 billion in 2024, representing a 1% decrease from £32.106 billion in 2023.
The association’s research also tracks premium income written in overseas or regional UK offices but managed by London company market operations. For this “controlled business,” direct and facultative placements increased from £4.850 billion to £4.932 billion in 2024, while treaty premiums dipped slightly from £0.587 billion to £0.567 billion.
Quota share reinsurance remains a widely used strategy in the London and global markets, enabling both established and new market participants to share premiums and losses by a fixed percentage. This proportional approach is valued for its predictability, ability to stabilize financial results, and support for growth, especially in periods of increased competition or market expansion.
In addition to established players, new entrants are using quota share and other proportional reinsurance agreements to manage risk, stabilize earnings, and support business development in the London market. These tools are particularly relevant as the market adapts to changing risk profiles and seeks to maintain underwriting discipline amid broader competitive pressures.
"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,” said Scott Farley (pictured above), IUA director of communications.
He noted that overall premium increases in 2024 were more modest than in recent years as inflationary pressures in claims costs have eased. Farley noted that IUA members remain optimistic about future business prospects, with many firms reporting strong retention rates for existing clients and plans to grow core business classes while monitoring new opportunities.
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