London market and Lloyd’s top £100bn premium income for first time

The London company market grew its premium income by 10% in 2023 to reach £48.43bn, according to new data published by the International Underwriting Association (IUA). When combined with Lloyd’s 2023 premium income of £52.15bn), the London market and Lloyd’s broke the £100bn barrier for the first time.

The London market total comprised £42.99bn underwritten in London, plus a further £5.44bn of ‘controlled business’ written in other locations but overseen and managed by London operations. Premiums written in London increased by 14%, while ‘controlled business’ fell by 16%.

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 £5.16bn in 2023.

Other classes continue to demonstrate impressive growth rates, according to the IUA. Motor, accident and health, renewable energy, political risks and cyber premiums all saw year-on-year increases over 15%.

The IUA noted that premium written in London, North America is an increasingly important source of income, while 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,” said the IUA.

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.

He added: “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.”