Lloyd's reports £10.6 billion profit in 2025 calendar year

On Thursday 19th March, Lloyd’s Chief Executive, Patrick Tiernan, released a comprehensive update outlining the market’s performance, its unique structural advantages, and its priorities in an increasingly complex risk environment. Lloyd’s reinforced its position as the world’s leading specialist insurance marketplace and highlighted the opportunities and challenges that lie ahead.

Overview

Lloyd’s continues to distinguish itself through a diversified, legally‑segregated capital structure that enables it to shoulder more insurance risk per unit of capital than any other financial institution. This structural advantage, combined with deep underwriting expertise and a resilient mutual framework, remains core to Lloyd’s global relevance.

The global risk environment is becoming more volatile and interconnected. Political fragmentation, technological disruption, climate volatility, and escalating cyber exposures are reshaping the risk landscape. As these risks become more structural than cyclical, insurance will play an increasingly critical role in providing stability and enabling economic progress.

More recent developments in the Middle East & US will have an impact however, Lloyd’s strong balance sheet, syndication and diversification is well placed to respond to the situation as it evolves. Exposure Management  and Realistic Disaster Scenario (RDS) analysis exist to ensure Lloyd’s remains resilient to such Market events.      

2025 Market Performance

Lloyd’s delivered strong results for 2025, demonstrating both resilience and discipline:

• Profit before tax: £10.6bn (up 10.1%)
• Return on capital: 22%, being third consecutive year that this exceeded 20% (10 year average is 9.5%)
• Combined ratio: 87.6% supported by benign catastrophe activity.  The underlying combined ratio, excluding major losses, was 81.8% in 2025 (2.7% higher than the year before which reflected a heightened expense ratio, which rose to 35.6% (up 1.2%), a trend which will be monitored). 
• Gross written premium: £57.9bn (Growth of 4.2%). The market reported average reductions in price on renewal of 3.7% and a negative foreign exchange impact of 2.4% as sterling strengthened in the year. This was compensated growth in existing syndicates of 7.2% and the entry of new syndicates contributing 3.1%. Lloyd’s view is that the reduction from a planned £60 billion of premium income reflects sensible and cautious underwriting in a more competitive underwriting climate.

These results reflect disciplined underwriting, the benefit of Lloyd’s reforms in recent years, a strong investment performance (FY 2025 £2.5bn investment income) and continued capital strength across the market (496% Central solvency is up 61% to FY 2024 vs market-wide solvency ratio of 200%)

Emerging Risk Themes

A key theme is the issue of widening protection gaps, particularly in natural catastrophe, cyber and supply‑chain exposures. Reliance on government intervention may be less sustainable; private‑sector insurance will need to step up to support future economic resilience.

Data centres are highlighted as a fast‑growing but complex risk class, combining high‑value physical assets, extreme power dependency, cyber exposure and systemic business interruption potential. Demand for cover is rising quickly and is expected to exceed available capacity—an area where Lloyd’s is well positioned to provide leadership.

Strategic Priorities

Looking ahead, Lloyd’s has set out four strategic pillars designed to strengthen and modernise the marketplace:

1. Leading Underwriting Performance
   Sustained discipline and expertise to deliver long‑term profitability  
2. A More Efficient, Flexible Marketplace
   Reducing frictional costs and enabling capital and talent to move at pace.
3. Maximising Lloyd’s Capital Advantage
   Enhancing the market’s ability to take risk efficiently and deliver superior returns.
4. Creating a Lloyd’s to Be Proud Of
   Focusing on people, innovation and culture to support future competitiveness.

Executive Summary

Lloyd’s must remain ‘risk aware’ given current geopolitical, economic and market challenges in a moderating pricing environment. Underwriting discipline must be maintained to ensure margin is not eroded (be that via rate dilution, expense creep, coverage relaxation, limit creep, unrealistic reserving, which have served to erode margin historically and cumulatively have been damaging for global P&C market). These are all levers that can be pulled within syndicate control.

Links to the full results, analysts’ slide pack and a recording of the results and market messages are available from these links.

Results

Analysts’ pack

Video recording (opens youtube)