North British and Mercantile Insurance
Encyclopedia
The North British and Mercantile Insurance Company was a British based company founded in 1809 in Edinburgh
Edinburgh
Edinburgh is the capital city of Scotland, the second largest city in Scotland, and the eighth most populous in the United Kingdom. The City of Edinburgh Council governs one of Scotland's 32 local government council areas. The council area includes urban Edinburgh and a rural area...

 and absorbed as a subsidiary of the Commercial Union in 1959. The company was also known as the North British Insurance Company, North British Fire Office and North British Fire Insurance Company.

History

The company was established after a meeting on April 17 1809 at the Royal Exchange Coffee House, when a notice was placed in newspapers in Edinburgh announcing a proposal to found a fire insurance company called the North British Insurance Company. A contract of copartnery was issued on October 19 1809 allowing a capital of £1 million and the new company commenced business on November 11. In 1823, the company extended its business to include life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...

. The company, successfully trading and growing, was granted a royal charter
Royal Charter
A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organizations such as cities or universities. Charters should be distinguished from warrants and...

 on February 6 1824, in the expectation that the permitted capital would be exceeded.

In 1862 the company merged with the Mercantile Fire Insurance Company and changed its name to North British & Mercantile Insurance Company. From 1890 until 1996, the company had an arrangement with the Civil Service Insurance Society allowing society members to be insured by North British & Mercantile on special rates. In the 1860s, the company had opened businesses and agencies across the world, including the far east and Africa.

North British & Mercantile extended its business to include all marine risks in 1901. Later, through its subsidiaries, general insurance
General insurance
General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and...

 was added. The company's scope continued to grow and, by 1911, it was transacting fire, life, marine, accident, fine art, burglary and motor insurance. In May 1911, the company's burglary and contingency department was transferred to a subsidiary, the Railway Passengers Assurance Company.

It was incorporated as a limited company
Limited company
A limited company is a company in which the liability of the members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be...

 on November 1 1920 and became a subsidiary of the Commercial Union Assurance Company Ltd in 1959. The company maintained head offices in Edinburgh until 1963 and in London until 1969. Since June 30 2006, it has been registered as a non-trading company.

The company's name continues in a number of its former premises.
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