Royal Exchange Assurance Corporation
| Company type | Public |
|---|---|
| Industry | Insurance |
| Founded | 1720 |
| Defunct | 1968 |
| Fate | Merged with Guardian Assurance Company to form Guardian Royal Exchange Assurance |
| Headquarters | London , United Kingdom |
| Products | Marine insurance |
The Royal Exchange Assurance, established in 1720, was a British insurance firm named after its premises located at the Royal Exchange, London.
Origins
The inception of Royal Exchange Assurance traces back to a joint stock insurance enterprise known as Onslow's insurance or Onslow's Bubble, originally called the Mercer's Hall Marine Company. This entity specialized in providing insurance for vessels and cargoes navigating the seas. Following incorporation disputes in 1718, Lord Onslow endeavored in 1719 to validate the enterprise by employing charters from the Society of Mines Royal and Company of Mineral and Battery Works, but the Attorney-General rejected this approach as "unwarrantable". Subsequently, the directors petitioned for their own royal charter in January 1720. Together with the London Assurance Company, they pledged £300,000 towards settling George I's Civil List liabilities, securing approval from both the crown and Parliament under the provisions of the Bubble Act. The newly chartered corporation then exchanged shares with its predecessor.
Chartered company
The organization was granted a royal charter pursuant to the Royal Exchange and London Assurance Corporation Act 1719 (6 Geo. 1. c. 18), commonly referred to as the Bubble Act. This statute conferred exclusive corporate rights upon the Royal Exchange and the London Assurance Company to underwrite marine insurance, effectively restricting competition from other incorporated entities, although private insurers such as those operating at Lloyd's of London remained active. This monopoly persisted until it was partially revoked by the Bubble Companies, etc. Act 1825 (6 Geo. 4. c. 91).
Amalgamation
After functioning autonomously for more than two hundred years, Royal Exchange Assurance merged with the Guardian Assurance Company in 1968, resulting in the formation of Guardian Royal Exchange Assurance.
Governors
Prominent governors who led the company included:
- Nicholas Magens (1741–1750)
- Pascoe Grenfell (1829–1838)
- Thomas Tooke (1840–1852)
- Octavius Wigram (1852–1878)
- Vivian Smith, 1st Baron Bicester (1914–1956)
- Hugh Kindersley, 2nd Baron Kindersley (1955–1968)
Further reading
- Barry Supple, The Royal Exchange Assurance: A History of British Insurance 1720–1970, Cambridge, 1970