According to new data from the International Underwriting Association, contractual reinsurance in the London corporate market grew by almost a third in 2023. Premiums in the sector reached £10.889 billion, up from £8.248 billion in 2022.

The figures, part of the International Reinsurance Association’s London Corporate Market Statistics report, were presented at the Monte Carlo Forum. The initial reinsurance data highlighted significant growth in the sector.

Total direct and facultative premiums written by London firms amounted to £32.106 billion in 2023, up 9% from £29.378 billion in 2022.

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Treaty business grew at a faster pace, accounting for 25% of the total market, the highest percentage since IUA began tracking this data in 2010.

The IUA also tracks premium income generated by overseas or regional offices in the UK that fall under the management of the London market operations. For this “controlled business”, direct and facultative underwriting saw a 9% increase, rising from £4.455bn to £4.850bn.

However, treaty reinsurance in this category fell sharply, from £1.990bn to £0.587bn in 2023. Despite this decline, the total treaty business in the London corporate market still increased by more than £1.2bn, up 12%, from £9.238bn to £11.476bn.

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IUA communications director Scott Farley (pictured above) pointed to the continued trend of strong growth in the London corporate market statistics report, adding that multiple categories of businesses are benefiting from favourable pricing conditions.

“While the indexation of premiums due to increases in the values ​​of insured assets is clearly significant, companies are also reporting more selective growth as they have made significant underwriting investments,” Farley said.

The total of £10.889 billion in treaty reinsurance in 2023 represents a significant increase since 2010, when the IUA first began collecting data on the sector. In that year, treaty contracts were worth £3.216 billion in premiums.

The London Corporate Market Statistics 2024 report will include detailed breakdowns of premium data, a comparison with the Lloyd’s market and commentary from shareholder companies. The report is expected to be released later this month.

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