RCS - Lloyds Of London - Half-year Financial Report
Lloyd's Market Delivers Solid First Half Performance, Despite Softening Rate Environment and Rising Geopolitical Tensions
03 September 2026 0700 BST
· Gross written premium increased by 6.9% to £34.7bn, driven by growth from new and existing syndicates, despite a more competitive pricing environment.
· An underwriting profit of £1.9bn and combined ratio of 90.8% benefited from comparatively lower major claims, while the underlying combined ratio increased to 84.0% as risk-adjusted rates reduced.
· Profit before tax decreased to £3.5bn, with investment returns of £1.8bn affected by unrealised fixed income losses following a widening of yields in the period.
Lloyd's today announced the market's results for the first six months of 2026, reporting gross written premium of £34.7bn (HY 2025: £32.5bn) and a combined ratio of 90.8% (HY 2025: 92.5%). The market remains on track to deliver the full-year results previously guided.
Key Financial Highlights
HY 2026
HY 2025
Gross written premium
£34.7bn
£32.5bn
Underwriting result
£1.9bn
£1.5bn
Combined ratio
90.8%
92.5%
Underlying combined ratio
84.0%
82.1%
Profit before tax
£3.5bn
£4.2bn
Investment return
£1.8bn
£3.2bn
HY 2026
FY 2025
Total capital, reserves and subordinated loan notes
£48.4bn
£49.8bn
Return on capital (rolling)
21.6%
22.0%
Market-wide solvency coverage ratio
199%
200%
Central solvency coverage ratio
503%
496%
Chief Executive's Statement
"The syndicates operating in the Lloyd's market delivered a solid aggregate set of results for the six months ended 30 June 2026. But performance and high risk are far from mutually exclusive. Underwriting discipline and innovation are the keys to maintaining outperformance and quality of earnings."
- Patrick Tiernan, Chief Executive
Premium Growth
The market's gross written premium increased by 6.9% to £34.7bn (HY 2025: £32.5bn), driven by strong volume growth of 15.8% (HY 2025: 11.9%) from new and existing syndicates. This was offset by adverse foreign exchange movements of (2.2)% (HY 2025: (2.2)%) as sterling strengthened against the US dollar, and by a market-wide price reduction of (6.7)% (HY 2025: (3.5)%), consistent with a more competitive pricing environment.
Underwriting Result and Combined Ratio
The market reported an underwriting result of £1.9bn (HY 2025: £1.5bn), with a combined ratio of 90.8% (HY 2025: 92.5%). The major claims ratio improved to 6.8% (HY 2025: 10.4%) reflecting a comparatively lower level of catastrophe losses in the first half of the year. The underlying combined ratio of 84.0% (HY 2025: 82.1%) increased slightly, corresponding with the reduction in risk-adjusted rates. Prior year reserve releases contributed a 3.5 percentage points (HY 2025: 2.0 percentage points) benefit to the combined ratio, reflecting favourable movement across multiple classes, partly offset by reserve strengthening on the Baltimore Bridge loss and updated Ukraine estimates. The expense ratio rose to 36.4% (HY 2025: 35.8%) due to higher acquisition costs and increased profitability-driven commissions.
Investment Performance
The Lloyd's market generated an investment return of £1.8bn or 1.6% (HY 2025: £3.2bn, 3.1%). The result comprised strong income and realised gains, whereas unrealised losses detracted from performance. Yields widened during the period as geopolitical tensions and inflationary pressures resulted in downward pressure on fixed income assets. Equity markets, by contrast, performed strongly and provided a partial offset. The market's portfolio remains focused on high quality asset allocation, capital preservation and liquidity.
Capital and Solvency
Lloyd's capital position remains strong, with total capital, reserves and subordinated loan notes of £48.4bn (FY 2025: £49.8bn) at 30 June 2026. Underlying capital generation in the first half of the year was offset by the return of capital to members, reflecting the strong performance of the closing underwriting year of account. The central solvency ratio increased to 503% (FY 2025: 496%), while the market-wide solvency ratio remained broadly stable at 199% (FY 2025: 200%). Lloyd's financial strength continues to be recognised by rating agencies, with current ratings of A+ (AM Best) and AA- (Fitch Ratings, KBRA, and S&P Global).
Strategic Focus and Outlook
The strategy launched in March to sharpen Lloyd's financial edge is focused on deploying Lloyd's distinctive strengths to deliver four strategic drivers: leading underwriting performance; an efficient and flexible marketplace; maximising Lloyd's capital advantage; and building a Lloyd's to be proud of. Delivery depends on maintaining the stability, discipline and service on which Lloyd's reputation depends, while reducing cost and friction, providing greater flexibility, modernising technology and data, and building the capabilities required for future innovation.
The market's performance in the first half leaves it well positioned to deliver against the full-year guidance set out in March.
ENDS
Notes to Editors:
· View the 2026 Half Year Results report.
· 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.
· Return on capital is the ratio of the result before tax for the most recent 12-month period to the average of opening and closing total capital and reserves over the same period.
· 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 is available from lloyds.com.
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