19th Mar 2026 07:09
Lloyd's market delivers strong full year performance; very strong balance sheet; increased capital
· The Lloyd's market produced strong results in 2025 with profits of £10.6bn (+10.1%), gross written premium of £57.9bn (+4.2%) and a combined ratio of 87.6% (+0.7pp).
· Underwriting and investment returns have resulted in further strengthening of the balance sheet with total capital reaching £49.8bn (+5.7%) and the central solvency ratio increasing to 496%.
· Lloyd's today launches a new strategy to sharpen the market's financial edge and maximise its unique capital advantage.
Key Financial Highlights
| FY 2025 | FY 2024 |
Gross written premium | £57.9bn | £55.5bn |
Underwriting result | £5.2bn | £5.3bn |
Combined ratio | 87.6% | 86.9% |
Underlying combined ratio | 81.8% | 79.1% |
Investment return | £6.0bn | £4.9bn |
Profit before tax | £10.6bn | £9.6bn |
| ||
Total capital, reserves and subordinated loan notes | £49.8bn | £47.1bn |
Return on capital | 22.0% | 21.0% |
Central solvency coverage ratio | 496% | 435% |
Market-wide solvency coverage ratio | 200% | 205% |
Chief Executive statement
"Strong underwriting performance, disciplined growth, and resilient investment returns underpinned the Lloyd's market's result in 2025.
Supported by a very strong balance sheet, these results provide a firm foundation for the challenges and risks ahead, enabling the market to support communities, businesses and economies through periods of uncertainty. While the financial cost of catastrophes in 2025 was relatively modest, we remain acutely aware of the greater, human impact and those whose lives have been affected.
Today we are also setting out a new five-year strategy - a disciplined, market-led and necessary sharpening of our financial edge. It focuses on underwriting performance, improving efficiency and maximising our unique capital advantage, to drive improved returns.
This is how we will advance and protect Lloyd's as the pre-eminent global marketplace for insurance risk."
- Patrick Tiernan, Chief Executive
Premium Growth
The market's gross written premium rose by 4.2% to £57.9bn (2024: £55.5bn), with 10.3% volume growth reflecting both new participation in the market and continued expansion by existing syndicates. This was offset by a (2.4)% (2024: (2.3)%) adverse foreign‑exchange impact as sterling strengthened against the US dollar, and a (3.7)% reduction (2024: 0.3% improvement) in price, consistent with a more competitive pricing environment.
Underwriting Result and Combined Ratio
The market reported an underwriting result of £5.2bn (FY 2024: £5.3bn), with a combined ratio of 87.6% (FY 2024: 86.9%). The major claims ratio reduced to 5.8% (2024: 7.8%), reflecting comparatively benign catastrophe losses in the latter part of the year. The underlying combined ratio of 81.8% (FY 2024: 79.1%) increased slightly, while continuing to reflect disciplined underwriting and resilience in underlying profitability. Prior year reserve releases provided a 1.7% (FY 2024: 2.4%) benefit to the combined ratio, with favourable movement in property exposures partly offset by strengthening in aviation and casualty reserves, while the attritional loss ratio remained relatively stable at 47.9% (FY 2024: 47.1%). The expense ratio rose to 35.6% (FY 2024: 34.4%) due to a combination of profitability-driven commissions, mix-driven acquisition costs and impacts of foreign exchange.
Investment Performance
Lloyd's generated an investment return of £6.0bn (5.6%) (FY 2024: £4.9bn, 4.7%), driven by income and realised gains from fixed income assets, alongside positive equity market performance. Falling interest rates also contributed to mark‑to‑market gains across the fixed income portfolio. The market's portfolio continues to demonstrate resilience amid ongoing geopolitical uncertainty and interest rate volatility, underpinned by high quality asset allocation focused on capital preservation, liquidity and effective matching of liabilities.
Capital and Solvency
Lloyd's capital position remains strong, with total capital, reserves, and subordinated loan notes increasing by 5.7% to £49.8bn at 31 December 2025 (FY 2024: £47.1bn) driven by strong underlying profitability. Return on capital increased to 22.0% (FY 2024: 21.0%). Sustaining attractive returns across the cycle remains a priority for the market.
The Lloyd's central solvency ratio increased to 496% (FY 2024: 435%), and the market-wide solvency ratio decreased slightly to 200% (FY 2024: 205%). Both ratios remain well above regulatory requirements. Lloyd's financial strength continues to be recognised by rating agencies, with current ratings of A+ (AM Best) and AA- (Fitch, KBRA, and S&P Global).
Strategic Progress and Outlook
Lloyd's new strategy has four strategic drivers: leading underwriting performance; a more efficient marketplace that reduces friction and cost; maximising our unique capital advantage to enhance returns; and creating a Lloyd's to be proud of - by fostering a culture of focus, innovation and talent.
While pricing conditions are becoming more challenging and volatility is increasing, our expectations are unchanged and we remain confident in the market's ambitions focused on sectors and classes where rate adequacy is strongest.
ENDS
Notes to Editors:
· View the 2025 Annual Report here.
· A combined ratio is a measure of an insurer's underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums.
· An underlying combined ratio is the combined ratio excluding major claims.
· Lloyd's financial strength ratings are AA- (Very Strong) stable outlook with S&P Global, A+ (Superior) stable outlook with AM Best, AA- (Very Strong) stable outlook with Fitch Ratings, AA- (Very Strong) stable outlook with KBRA.
· More news and information available from lloyds.com.
About Lloyd's
Lloyd's is the only insurance marketplace of its kind in the world. It brings together more than a hundred syndicates and thousands of investors, enabling the market to shoulder more insurance risk for every unit of capital than any other financial institution in the world.
The role of the Corporation is to advance and protect the market - by maintaining underwriting discipline and our financial strength; and by attracting expertise, innovation and scale.
Our unique global licences and excellent financial strength ratings provide the infrastructure, oversight and confidence required to understand, price and manage complex and interconnected risks.
Risk transfer - properly executed - underpins economic growth, resilience and innovation around the world. This is the role Lloyd's has played for 337 years and it remains central to our purpose today.