London market premiums exceed £100bn for second year running

Premium income in the London company market increased by 1.7% to £49.3bn in 2024, according to the International Underwriting Association’s (IUA) London Company Market Statistics Report.

The figure included £43.8bn underwritten in London and £5.5bn of controlled business written overseas, but managed through London operations.

When combined with Lloyd’s 2024 results, the total London market premium reached £104.8bn. 2023 was the first time the combined income of the London company and Lloyd’s markets exceeded £100bn.

The data also showed that direct and facultative business written in London fell by 1% year-on-year to £31.8bn, while treaty business grew by 10% to £12bn.

Treaties now account for 27% of all business written in the capital.

By class of business, property remained the largest line at just under 30% of London premiums, while liability accounted for 14% and marine 13%.

Meanwhile, professional lines premium dropped to £4.6bn, the lowest level since 2020. Meanwhile, motor premium rose 20% year-on-year to £4bn.

US and Canada pass premiums turning point

The UK and Ireland represented over half of all premiums written in London, but the US and Canada passed the £10bn mark for the first time, now making up almost a quarter of the total market compared with 16% in 2019.

Scott Farley, director of communications at the IUA, said: “Once again, our study has clearly shown the importance of the London company market to the financial services sector and wider UK economy.

”It offers a unique data set, illustrating the premiums earned by world-leading insurers and reinsurers.”

Farley added that members remained optimistic about future growth despite “possible clouds on the horizon” such as geopolitical risk and trade barriers.

He said many firms reported strong client retention alongside plans to expand in core lines and explore new opportunities.