The London market enjoyed positive cash flow of more than £2.5bn during 2003, revealed figures from the International Underwriting Association (IUA).
It said this figure was an increase of over £0.5bn on the 2002 figures and nearly a ten-fold increase on 2001.
The IUA said the Ins-sure bureau processed premiums of £5557m were by during 2003, up from £5469m in 2002 and £4199m in 2001.
The value of total processed claims was down, however, to £2893m, compared with £3457m in 2002 and £3908m in 2001, said the IUA.
IUA chief executive Marie-Louise Rossi, said: "These buoyant figures clearly demonstrate the underlying strength of the London company market.
"IUA members' rising income and positive cash flow are encouraging trends, though we should not allow them to distract from ongoing efforts to introduce efficiency reforms.
"Despite competition from other centres London maintains its leading position in the international insurance industry and IUA members' positive cash flow is making a significant contribution to the UK's balance sheet."
The IUA said its figures for underwriting during 2003 showed acceptable underwriting results in most classes of business, although there was the potential for outstanding claims to change the figures.
It said the most significant uplift in premium had occurred in the aviation sector where premiums for 2003 so far stood at £513.4m, against a 2001 figure of £310.8m. At the same time claims received after 12 months had declined to £18.7m from £37.5m in 2001.
The IUA said both trends reflected increased maintenance and security measures introduced in the wake of the September 11 terrorist attacks.
