London company market premium jumps on inflationary price increases
Total premium income for the London company market in 2022 reached £44 billion, a new report by the International Underwriting Association (IUA) has revealed. The figure represents an increase of around one quarter on the previous year when an aggregate of £35.65 billion was recorded.
The overall intellectual and economic premium for 2022 comprises £37.63 billion written in London (up from £30.114 billion in 2021), plus a further £6.444 billion (£5.540bn in 2021) written in locations outside the City, but overseen and managed by London operations.
The latest annual edition of the IUA’s London Company Market Statistics Report features a more detailed analysis of activity in the sector, including new lines of business, such as commercial crime, specie and surety.
Premium growth has been largely driven by inflationary price increases, IUA said, but new business acquisitions following investments in underwriting talent have also been important. The invasion of Ukraine has led to risk-adjusted price increases in certain classes such as political violence, but has also reduced income for other accounts due to a cessation of Russian-exposed business.
Property remains the largest class of business for premium written in London, accounting for 27% of the company market total, according to the report. Liability and professional lines business each account for a further 15%. Both property and marine premium grew significantly in 2022, the former by a quarter and the latter by a third. Other notable growth rates were observed in professional lines and cyber.
North America, an increasingly important source of business for London companies, generated an overall premium of £9.454 billion in 2022, up from £7.207 billion in the previous year.
Dave Matcham, chief executive of the IUA, said: “Our research this year once again provides concrete evidence of a thriving and unique community of insurers and reinsurers. IUA members continue to grow their operations across a wide range of business classes and geographies.
“This report shows the full extent of international speciality and wholesale coverage provided by companies in London. The income generated by such firms is significant, and an important contributor to the UK economy.”
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