Lloyd’s has reported its financial results for the first half of 2025, with gross written premium rising to £32.5 billion, up 6.2% from £30.6 billion in the same period last year.
The market’s combined ratio increased to 92.5%, compared to 83.7% in the first half of 2024. Profit before tax for the period was £4.2 billion, down from £4.9 billion a year earlier.
The increase in gross written premium was driven by volume growth of 11.9% from both new and existing syndicates. However, this was partially offset by adverse foreign exchange movements of (2.2)% as sterling strengthened against the US dollar, and a negative price change of (3.5)%. Despite these headwinds, rates in most segments remain adequate, according to the market.
The underwriting result for the half year stood at £1.5 billion, a decrease from £3.1 billion in the prior year period. The rise in the combined ratio was primarily attributed to major claims, notably the California wildfires in the first quarter of 2025.
Excluding major claims, the underlying combined ratio was 82.1%, compared to 80.6% last year. The attritional loss ratio was 48.3%, broadly in line with the previous period. Prior year reserve releases contributed a 2.0% benefit to the combined ratio, including improvements in catastrophe events such as Hurricanes Helene and Milton, though this was partly offset by reserve strengthening in aviation due to updated Ukraine loss estimates. The expense ratio increased to 35.8%, reflecting higher gross commissions and staff costs.
Comparatively, for the full year 2024, Lloyd’s gross written premium increased by 6.5% to £55.5 billion, up from £52.1 billion in 2023, with an 8.5% growth rate, primarily in property and reinsurance. The combined ratio for 2024 was 86.9%, up from 84% in 2023, driven by major claims in the second half of the year.
The underlying combined ratio was 79.1% in 2024, compared to 80.5% in 2023. These figures highlight the market’s ongoing exposure to large-scale events and the continued importance of disciplined underwriting.
The major claims ratio for 2024 increased to 7.8%, reflecting the impact of large-scale catastrophes, including hurricanes Milton and Helene and the Baltimore Bridge collision. Lloyd’s also estimated a net loss of approximately $2.3 billion from the California wildfires for 2024.
Investment performance contributed £3.2 billion, or 3.1%, up from £2.1 billion and 2.1% in the first half of 2024. The result was supported by higher reinvestment yields and a favourable rate environment, as fixed income markets rebounded and pricing improved across key asset classes.
Lloyd’s noted that the portfolio remained resilient despite rate divergence among major central banks and ongoing geopolitical tensions.
Chief executive Patrick Tiernan said the market delivered a solid half-year performance, demonstrating strength and resilience.
“While major claims returned to expected levels - driven by the devastating California wildfires - disciplined underwriting ensured the underlying result had the capacity to absorb such volatility,” Tiernan said. He added that investment performance was strong and the market’s capital position and solvency ratios provide a foundation for future growth.
Looking ahead, Tiernan noted that the market faces a more challenging pricing environment and heightened uncertainty, but continues to innovate and expand its global reach.
“Our focus remains on facilitating sustainable and attractive returns on capital through the economic cycle for all market participants,” he said.
Lloyd’s said that it is working on a refreshed strategy, expected by March 2026, which will prioritise sustainable returns, disciplined execution, and reduced cost and complexity. The Corporation aims to strengthen its operating infrastructure, support market participants, and foster innovation to ensure long-term sustainability as a global risk market.
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