The P&C segment accounted for more than half of all premium written in the London Market in 2018, while P&C business dominated in terms of premium income flows into the capital, with a compound annual growth rate of 8.1% between 2015 and 2018.
In a new report released today by the London Market Group and McKinsey, it was found that a significant part of the premium during this period came from P&C and financial lines.
The London Market comprises both the core London Market (Lloyd’s, company market/ International Underwriting Association, and Protection & Indemnity Clubs) as well as the managed business written on paper outside the London Market but managed by London-based carriers or brokers.
Premium written in the core London Market has grown steadily between 2010 and 2018, with a CAGR of 2.5%. This growth accelerated in 2015-18 to 3.7% CAGR.
Meanwhile, London Market’s income from North America increased by 6 percentage points between 2010 and 2018, making it the largest source of premium.
North America was also the fastest growing region for the London Market during this period, with the most rapid increase in growth taking place post-2015.
Looking at the breakdown of premium by region, by far the largest contribution overall comes from the North American P&C segment, at $17.1 billion.
Commenting on the launch of LMG’s latest London Matters report, Simon Matson, CEO of Gallagher’s UK broking and underwriting business, said, “The latest edition of London Matters shows that the re/insurance market has remained robust, and that is clearly good news.
“The fact that London’s share of the global insurance market has increased and that the US is now the largest source of revenue points to healthy trading relationships for the market.
“But of course, this report pre-dates the new world order in which we now find ourselves and does not reflect any impact on the market and on our clients as a result of COVID-19.
“Those changes, to the way we work and to our customers’ needs, are going to be significant and long lasting.
“As an industry we must work to maintain the efficiencies we have achieved, as well as thinking about how we look at new and existing risks for our clients going forward.”
