Why invest in Lloyd's of London as a private investor?

Author: Kate Tongue, Executive Director  |  Argenta Private Capital Ltd

The key benefits for private individuals investing at Lloyd's include:

— The potential for steady returns
— Low correlation wtih traditional markets
— The double use of asssets
— Inheritance tax relief

Solid returns

Lloyd’s routinely delivers solid returns for its investors and is currently experiencing particularly favourable market conditions. The most recent set of Lloyd’s results, released in March 2025, saw the market achieve an overall profit of £9.6bn before tax for the 2024 year of account and an investment return of £4.9bn (Lloyd’s Full Year results 2024). For private investors, these figures reflect a satisfying follow on the strong results of 2023, with this period of high returns continuing to build a case for Lloyd’s as an alternative asset class.

Low correlation

As Lloyd’s benefits from a low correlation with traditional markets, its results are minimally impacted by the state of the global economy. This means that Lloyd’s results will not typically suffer from setbacks such as the global financial crisis and COVID-19. For example, when the FTSE 100 dropped by 31.3% during the global financial crisis of 2008 , the Lloyd’s market actually saw a healthy increase of 17.7%. Likewise, UK stocks fell 14.3% during the 2020 coronavirus pandemic – but Argenta clients enjoyed returns on their capital of 3.6%.

This low correlation is beneficial for investors not just because Lloyd’s may return profits during difficult economic conditions, but also because it allows for diversification of an investment portfolio. For investors, diversification into Lloyd’s provides assurances that their portfolio is not purely reliant on a positive global economy and allows for a more balanced strategy.

The double use of assets

Private investors are also drawn to an investment at Lloyd’s because of the double use of assets that they can exercise. Put simply, the double use of assets means that investors can utilise their existing investment collateral, including stocks, bonds, and even property, to support their Lloyd’s investment. The assets that are pledged by investors act as a back-stop for underwriters, in case claims and expenses exceed premiums, but can also continue to generate returns in the meantime. If these assets are looked after by an investment manager, they can remain with them while also working as funds at Lloyd’s. The beneficial ownership of these funds is retained by the investor throughout, effectively making their assets work twice for them.

Inheritance tax benefits

Furthermore, due to the nature of Lloyd’s of London investments, they typically qualify for a level of business relief for Inheritance Tax purposes. The tax advantages of an investment at Lloyd’s are plentiful and can be structured for investors in a way that that maximises the tax efficiencies available. Many Lloyd’s investors have multiple generations involved in their family vehicles and use their investments to effectively enable succession planning. 

Eager to find out more?

As a compelling investment class, we are always happy to discuss and demystify the Lloyd's of London market to those who are interested. To learn more about how the investment works, including how you can explore involvement within the Lloyd’s market, please contact either myself or Robert Flach, Managing Director, via our details below.