London Treaty Reinsurance Premiums Fell 6% to £11.27B in 2025

Treaty reinsurance premiums written in the London company market declined 6% to £11.27 billion ($15.25 billion) in 2025, falling from £11.985 billion in 2024 as underwriters maintained pricing discipline amid increased market competition.

"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," said Scott Farley, the IUA's director of communications, according to an Investing.com report.

Market Share and Structural Breakdown

Despite the single-year drop, treaty reinsurance maintained a steady footprint within the broader London market last year. Treaty business accounted for 26% of total premiums written in London, remaining roughly flat compared with the proportion recorded in 2024.

The remaining 74% of premium income across the London company market was generated by direct and facultative business lines. Reinsurers negotiate treaty agreements to cover an entire portfolio of policies rather than individual risks, making treaty figures a key indicator of appetite for systemic risk.

Six-Year Growth Comparison

The 2025 contraction follows a period of substantial expansion for the London reinsurance sector following hardening rate cycles earlier in the decade. Back in 2020, total treaty premiums stood at just £5.32 billion, representing 19% of the London company market's total premium income.

The comparison highlights that even with the recent 6% downward correction, total premium volume remains elevated relative to pre-pandemic baselines. Underwriters have faced competitive rate pressures across several property and casualty classes, prompting selective deployment of capital rather than aggressive volume chase.