London market saw 6% decline in treaty last year: IUA
Property, motor and liability business all fell, while marine expanded
London company market transacted nearly £11.3bn in treaty reinsurance premiums in 2025
TREATY reinsurance premiums fell by 6% in the London company market last year, reflecting “a disciplined underwriting approach” and a mild correction after several years of strong growth, the International Underwriting Association has reported.
The London company market transacted £11.27bn ($15.25bn) in treaty reinsurance in 2025, down from £11.985bn ($16.22bn) in 2024, the IUA data showed.
The treaty market comprised 26% of London market reinsurance, with direct and facultative business accounting for about £29bn in premium.
Three of the four largest segments in the London market saw a fall in business volumes last year. Property and motor business - at £3bn and £2.4bn in premiums, respectively - saw declines of about 10%, while liability treaty volume (£1.4bn) fell about 14%.
On the other hand, marine business (£1.6bn) rose about 10% last year.
Treaty reinsurance written by or through London market businesses based outside London — known as “controlled business” — increased by nearly 10%, to £621m.
Geographically, the UK and Ireland continued to account for most premiums at £6.3bn, a fall of 7.7%. US and Canada business expanded modestly, by 1.7%, to £2.5bn, while continental Europe treaties accounted for £1.4bn, down 5%.
IUA director of communications Scott Farley told Insurance Day that the 2025 figures reflect a wider softening in the reinsurance market. They also follow several years of strong growth in London market treaty reinsurance.
This year’s drop “brings it back into the longer-term trend” and “reflects what's happening to reinsurance prices generally across the international market”, Farley said.
Going forward, Farley said property reinsurance prices are expected to continue falling, though the rate of decline should slow and eventually stabilise.
Geopolitical concerns feature among the leading concerns among reinsurers, he added, especially if instability “starts to spill over” into the wider macroeconomic conditions, including impacts on supply chains or rising inflation.
