REG - Lloyds Of London - Lloyd's market FY25 Results

Lloyds BankingAnnouncement

19/03/2026 08:15

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RNS Number : 2964X  Lloyds Of London  19 March 2026

 

 

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
(https://www.lloyds.com/about-lloyds/investor-relations/financial-results/full-year-results-2025)
.

·      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.

 

 

 

 

 

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