According to the International Underwriting Association’s (IUA) latest report, just over 26% of premiums written in London in 2025 were treaty reinsurance, with direct and facultative contracts making up the remaining 74%.
These proportions are almost unchanged from the previous year and consolidate a steady increase in the relative importance of treaty business over recent years, said the report.
To understand the growth, in 2020, treaty premiums written in London were GBP 5.320 billion, 19% of the market total.
However, the report also stated that treaty reinsurance written in the London market fell 6% in 2025; total premiums recorded by the sector were GBP 11.270 billion, compared to GBP 11.985 billion in 2024, reflecting a disciplined underwriting approach reported by many firms as global non-life premiums reach a cyclical low point.
A sector breakdown shows that property is the largest class of treaty reinsurance business written in London, reported at GBP 3.083 billion in 2025. Motor treaties comprise GBP 2.393 billion, followed by marine at GBP 1.555 billion and liability at GBP 1.365 billion.
A geographical analysis of income shows that the UK and Ireland are responsible for more than half of the market aggregate, with premiums of GBP 6.328 billion. While the US and Canada are the most important international markets, making up a further GBP 2.517 billion, whilst continental Europe generates an income of GBP 1.437bn for London reinsurers.
Additionally, companies operating in the city also oversaw and managed a further GBP 0.621 billion of treaty reinsurance written in overseas or UK regional offices in 2025. This ‘controlled business’ figure is up almost 10% from 2024 when it stood at GBP 0.567 billion.
Scott Farley, Director of Communications, IUA, commented, “The overriding message we have received from IUA member companies this year is one of disciplined underwriting. The figures from the latest London company market premium statistics survey clearly illustrate a shift to a more competitive pricing environment, compared to the hard market cycle observed in recent years.
“Whilst there has been a fall in treaty reinsurance premiums over the past 12 months, the market aggregate total is still more than double the figure from six years ago. There are also variations between different business classes and geographical regions. Where growth has occurred, however, it is described as ‘deliberately selective’.”
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