Gross written premiums written by the London company market have increased by 8.1 percent to $34.7 billion in 2018, according to a report published by the International Underwriting Association (IUA).
Better pricing strategies and improved market conditions made all the differents, according to IUA chief executive Dave Matcham.
“Improved market conditions and more effective pricing strategies in a number of different business classes have clearly helped drive another healthy growth in premium across the company market sector,” Matcham said. “Our members are pursuing effective business strategies to expand in specific sectors and have been successful in acquiring important new clients.”
Matcham said this year’s research reveals increased income in both traditional lines of business such as marine hull and motor, as well as newer and emerging sectors like renewable energy and crisis management.
Gross written premium in London for 2018 was just under $24 billion while another $10.8 billion was written in other locations but overseen and managed by London operations, according to the IUA’s London Company Market Statistics Report.
The report said the 8.1 percent gross written premium rise in 2018 follows a 16 percent jump reported for 2017.
The London Company Market Statistics Report 2019 also considers the impact of Brexit on future datasets, with many companies having established new insurance entities across continental Europe in advance of the original March 31 deadline for the UK to leave the EU. (The new deadline is Oct. 31).
The publication confirms recent media reports of new business being generated through European branches and the amount of controlled business written in Europe (excluding UK and Ireland) increased by 9.2 percent to a total of $6 billion in 2018.
“The data returns for this year’s report cover a period before the implementation of most Brexit contingency plans. Such is the diversity of London market business models, however, it is already certain that Brexit will impact different firms in quite different ways,” Matcham continued. “London is at the heart of an intricate web of cross-border business which is set to become even more complex.”
The report noted that insurers selected a number of different options for new European offices as part of their Brexit contingency plans and no single continental insurance hub appears to be emerging.
Other report findings include:
*A version of this story ran previously in our sister publication Insurance Journal.