The Rise and Fall of Thames & Mersey Marine Insurance

Thames & Mersey Marine Insurance was a pioneering insurance company that played a significant role in the maritime industry. Founded in 1866, it quickly gained a reputation for providing reliable and efficient insurance services.

The company's success was largely due to its innovative approach to risk management, which allowed it to offer competitive premiums to its clients. Its early adoption of modern insurance practices helped it stay ahead of the competition.

Thames & Mersey Marine Insurance's growth was also fueled by the expansion of the British shipping industry during the late 19th century. As the industry grew, so did the company's portfolio of policies and its reputation as a trusted insurer.

However, the company's fortunes began to decline in the early 20th century due to a combination of factors, including increased competition and a decline in the shipping industry's profitability.

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The pace of growth for British & Marine was rapid, attributed to its acknowledged skilful management, which earned an early success for this undertaking.

In just two weeks after formation, the company decided to establish underwriting agencies overseas, and by the end of the first year, there were 15 agencies spread around the world.

Success was short-lived, as less than two years from its formation, the 1864 Calcutta cyclone threatened the solvency of the company.

The company managed to pay all claims, but it decided to re-form itself as a new company of the same name in 1867, showing its resilience in the face of adversity.

By 1873, there were 50 overseas agencies, rising to 100 by 1895, demonstrating the company's ability to expand and adapt.

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The pace of growth for British & Foreign Marine was rapid, attributed to "An acknowledged skilful management earned an early success for this undertaking". Only two weeks after formation, the company established underwriting agencies overseas, with 15 agencies spread across the globe by the end of the first year.

Within the first year, the company's premium income placed it second in the table of marine insurers, with half the premium coming from Liverpool. This impressive start was short-lived, as the 1864 Calcutta cyclone threatened the solvency of the company just two years later.

All claims were paid, but the company decided to re-form itself as a new company of the same name in 1867. By 1873, the company had expanded its overseas agencies to 50, and this number continued to grow, reaching 100 by 1895.

By 1877, British & Foreign Marine had surpassed Thames & Mersey to take the top spot in the marine premium league. The company continued to expand, moving its head office from Exchange Building to a new office in Castle Street in 1887.

The following year, the Chairman informed the AGM that after 25 years, shareholders had received £935,000 in dividends for their initial investment of £100,000.

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In the early twentieth century, British & Foreign Marine's underwriting became more selective, leading to a significant decline in premium income.

Premium income fell by 44 per cent in the ten years to 1907, a stark contrast to its competitors.

By 1906, British and Foreign had fallen substantially behind its largest competitors, Thames & Mersey and Union Marine, who had similar premium income in 1901.

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In 1909, Royal Insurance acquired British & Foreign Marine for £1,675,000.

This purchase proved to be a shrewd business move, as it allowed the company to expand its operations and increase its profits.

The shareholders of British & Foreign Marine received dividends of £2.2m on their initial investment of £100,000 over the 46 years of its existence.

The Royal Insurance manager described the purchase as "a really magnificent, profit-earning association".

The company continued to operate separately from its other subsidiaries, including the Liverpool and London Globe Insurance, which it acquired in 1919.

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The inter-war trading period was a challenging time for Thames & Mersey Marine Insurance. Between 1920 and 1923, premium income halved due to the post-war shipping recession and overcapacity in marine insurance.

During this time, the company had to be cautious when taking on new business. The 1930s were marked by depressed conditions, but the company managed to avoid significant underwriting losses, except in 1937 when it lost money on underwriting.

In 1939, the company decided to integrate its marine subsidiaries in New York, which was a strategic move to improve efficiency. This integration continued with the operations of the three marine subsidiaries in Liverpool and then London, being merged in 1942.

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