Overall premium income for the London company market increased by around 10% in 2023, according to data published today by the International Underwriting Association. A total of £48bn was earned, comprising £43bn underwritten in London, plus a further £5bn of controlled business, written in other locations.
The latest edition of the IUA’s London Company Market Statistics Report shows that premiums written in London have risen by 14%, while controlled business has fallen by 16%.
At just over £12bn, property remains the largest class of business for premiums written by companies in London. Liability is the second largest class with just over £6bn. Marine overtook professional lines to become the third most important source of premium for companies writing in London, as the latter class saw income fall 5% to just over £5bn in 2023.
IUA chief executive Dave Matcham said: “The London Company Market Statistics Report offers a unique insight into the specialist insurance and reinsurance business that is a major contributor, both to London’s position as a global financial centre and the UK economy.
“The IUA recently celebrated its 25th anniversary and we are proud to have seen our membership grow in recent years. Companies continue to invest in London operations and our sector is able to find creative solutions for even the most complex and unusual liabilities.
“Cyber premiums, for example, have risen again this year. We have also recorded an increase in renewable energy business, reflecting the vital role insurers have to play in supporting sustainability goals.”
Motor, accident and health, renewable energy, political risks and cyber premiums all saw year-on-year increases over 15%.
For premium written in London, North America is an increasingly important source of income, whilst continental Europe is becoming less significant, with 23% and 9% of the market, respectively.
For controlled premium written outside of London, continental Europe now represents 35% of this market, suggesting that, though the structure of its connections may have changed post-Brexit, the relationship between the London company market and the EU is still strong.
More than 80 companies were surveyed for the IUA’s report. For the first time, the combined total of the Company and London Market broke the £100bn barrier. Lloyd’s premium income for 2023 was £52.149bn. Adding this to the IUA’s company market number of £48.432bn gives a figure of £100.581bn.
Source: cirmagazine.com
