The International Underwriting Association (IUA) has estimated that Brexit could hit £8.9 billion of premium written in the London market outside Lloyd’s.

The IUA has published its London Company Market Statics Report 2017 in which it identifies two areas which it thinks will be impacted by the UK’s withdrawal from the European Union: (1) company branches which passport into the UK from Europe to write international business coming into the London market; and (2) the UK-regulated London market companies which passport from the UK into Europe to write European business.

According to the IUA, a total of £7.383 billion is currently underwritten via branches of European-based firms which passport into the UK and £1.554 billion is earned by London market companies which passport into Europe.

Dave Matcham, the chief executive of the IUA, commented: “One of the most important outstanding Brexit questions for the London company market concerns the status of operations currently conducting business in the city as branches of either a continental European parent company or of a European subsidiary and with a parent elsewhere.” As exit negotiations stand, passporting rights will be lost when the UK leaves the European Union, so alternative structures will be needed1 if no deal is reached to preserve passporting in its current or a similar form.