Following a period of consolidation in the industry, London and Lancashire was acquired by Royal Insurance in 1962.
[1] Directors included Francis William Russell, MP for Limerick City, one of the prime movers in the City of London, and Francis Braun of Liverpool merchants Blessig Braun; shortly after, the connection with Gunn ceased.
(At the same time, London and Lancashire launched an abortive attempt to acquire the Queen Insurance Company).
Thus, within a year of the initial meeting, London and Lancashire had raised capital, appointed agencies across Britain and several overseas cities, and launched a life assurance company.
The London Board wanted to call on the shareholders for additional capital, but the Liverpool directors strongly disagreed.
Instead, it was agreed that London and Lancashire could borrow up to half its paid-up capital and take a loan from the life company.
Business continued to expand and premium income doubled between 1867 and 1872; the loss ratio began to decline and by 1873 the reserves became positive again.
The subsequent recovery and growth at London and Lancashire owed much to the 1874 appointment of Charles George Fothergill, previously Secretary to Royal Insurance, as Manager.
In 1879, London and Lancashire bought three U.S. companies including Safeguard Insurance of New York adding £80,000 to annual premium income of around £250,000.
Rutter's contribution was to move London and Lancashire from a pure fire company to a composite insurer, establishing these new areas through acquisition.
In 1912, London and Lancashire became a limited company with the power to transact life assurance and in 1919 bought Law Union and Rock for that purpose.
Premiums gradually rose to a new record in 1929 and the company avoided any losses in the Wall Street crash of that year.
The U.K. business was helped both by the introduction of compulsory car insurance after the Road Traffic Act 1930 and by the housebuilding boom.