Aggregate total combined with Lloyd’s market breaks £100bn barrier for first time
Overall premium income for the London company market increased by approximately 10% in 2023, according to new data published by the International Underwriting Association (IUA). A total of £48.432bn was earned during the year by firms in the City. This comprised £42.995bn underwritten in London, plus a further £5.437bn of ‘controlled business’, written in other locations, but overseen and managed by London operations.
The figures are published in the latest edition of the IUA’s London Company Market Statistics Report. It shows that premiums written in London have jumped by 14%, while ‘controlled business’ has fallen by 16%.
More than 80 companies were surveyed for the research which breaks down premium income by placement type, class of business and geographical origin. Company market income is also compared to that of the Lloyd’s market and, for the first time, the combined total of the two sectors has broken the £100bn barrier. For 2023 Lloyd’s premium income, stated in its annual report, was £52.149bn. Adding this to the IUA’s company market number of £48.432bn gives a figure of £100.581bn.
The IUA’s 2024 report confirms that property, on just over £12bn, remains the largest class of business for premiums written by companies in London. Liability is the second largest class with approximately half the income of property at £6.2bn.
Next comes marine which has overtaken professional lines to become the third most important source of premium for companies writing in London. The latter class saw income fall 5% to £5.159bn in 2023.
Other classes continue to demonstrate impressive growth rates. Motor, accident and health, renewable energy, political risks and cyber premiums all saw year-on-year increases over 15%.
The IUA’s geographical analysis reveals that for premium written in London, North America is an increasingly important source of income, whilst continental Europe is becoming less significant. These two regions now represent 23% and 9% of the market respectively.
Conversely, for ‘controlled premium’ written outside of London, continental Europe has risen and now represents 35% of this market. So, although the structure of its connections may have changed post-Brexit, the relationship between the London company market and the EU is still strong.
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.”
Copies of the London Company Market Statistics Report 2024 are freely available to download at iua.co.uk/statistics.
