London company market premium income jumps 16% in 2017
London company market premium income jumped to £26.3 billion in 2017, representing a 16 percent increase from the previous year, according to a new report by the International Underwriting Association (IUA).
IUA noted that the gross written premium in London for 2017 was £18.33 billion while a further £7.984 billion was identified as written in other locations, but overseen and managed by London operations.
According to The London Company Market Statistics Report 2018, there have been significant increases in both premium written in London (£2.3 billion or 14.3 percent) and controlled business written elsewhere (£1.3 billion or 19.3 percent).
“The growth in overall premium income is the most striking feature of this year’s London Company Market Statistics Report. It is a trend that has also been observed in the Lloyd’s market and is driven by a number of different factors.” said Dave Matcham, chief executive of the IUA.
“We have received multiple reports of companies embarking on new lines of business and growing premium volumes in specific classes as part of dedicated business plans. There are also instances of books of business being moved to the UK from other companies within a wider multinational group and of new insurance products being developed and offered to clients,” Matcham commented.
Furthermore, the report shows a total £3.14 billion was underwritten by delegated authorities and a business split between direct/facultative and treaty placements of 77 to 23 percent.
The breakdown of income by class of business showed that property was the most significant sector in 2017, accounting for just over a quarter of all income, followed by liability and marine at 17 and 15 percent, respectively. Of total liability premiums, public liability is the largest category of business, generating income of £2.12 billion in 2017.
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