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The company was founded in 1903 at a meeting in Shoreditch Town Hall attended by representatives of 13 local authorities: the Metropolitan Boroughs of Battersea, Deptford, Fulham and Shoreditch; the Boards of Guardians of Camberwell, Fulham, Poplar, Shoreditch, Stepney, and Whitechapel; East Ham District Council, Romford Urban District Council and the Poplar and Stepney Sick Asylum District.
The company was part of an attempt to save municipal authorities, and therefore ratepayers, money by mutual assurance rather than paying inflated premiums to private insurance companies. It kept the money in the public domain. The company expanded with a network of branches being formed: by 1946 over 1250 local authorities had policies with the company. In the early 1990s the company became part of the Zurich Insurance Group.