GBP7.3bn EU funds at risk after Brexit: IUA

Overall premium income for the London company market in 2015 was GBP21.645 billion, a new report by the International Underwriting Association (IUA) has stated. Gross premium written in London totalled GBP15.150 billion, while a further GBP6.495 billion was identified as written in other locations, but overseen by London operations.

The IUA’s London Company Market Statistics Report also analyses company market income that may be affected by regulatory changes resulting from the UK’s withdrawal from the EU. Of premium currently written in London, GBP7.337 billion will potentially be directly affected by a change in rules governing UK participation in the EU single market and its financial services passporting regime.

This ‘Brexit’ total includes GBP1.361 billion of European premium written in London by firms which are either headquartered in the UK or have a parent company headquartered in a third country and are using their London office to access EU business. In addition, there is a further GBP5.976 billion of international business written in London by firms with a parent company or principle European base located elsewhere in the EU.

Dave Matcham, chief executive of the IUA, said: “Our statistics report this year clearly highlights the importance of an open trading relationship between the London Market and Europe. It is vital that a level playing field is maintained, so that companies can operate freely without any need for local licences, regulatory collateral obligations or other special requirements.

“The arrangement must be reciprocal. There are, of course, many firms that rely on London’s existing access to the single market to freely write a great deal of business covering clients and risk across continental Europe. At the same time, however, UK membership of the EU also enables many other overseas companies to write, via branch offices, risks that flow to London from across the globe. It is the concentration of all this expertise that makes the London Market a unique international insurance and reinsurance hub.”