In 2024, Lloyd’s delivered strong returns to investors, with overall market profits just below the previous year’s record high.
According to the Lloyd’s Market Association (LMA) and Insurance Capital Market Research (ICMR), favorable trading conditions across most business classes and a recovery in investment valuations supported these results, despite higher major claims.
The major claims ratio increased from 3.5% in 2023 to 7.8% in 2024, yet remained below long-term averages.
The Lloyd’s pre-tax result for 2024 dropped to £9.6 bn from £10.7 bn the previous year. Gross written premiums increased to £55.6 bn from £52.2 bn.
However, the combined ratio worsened from 84 to 86.9. Investment returns declined to £4.9 bn from £5.3 bn, driven by fourth-quarter market volatility and associated mark-to-market losses.
Most syndicates at Lloyd’s reported underwriting profits in 2024, even as the market absorbed several significant claims events absent in 2023.
The report noted that this outcome confirms the favorable return on capital that Lloyd’s continues to offer. These returns, with relatively low correlation to other asset classes, compare positively in broader capital markets.
Investor interest in Lloyd’s remains high, but opportunities to allocate capital efficiently have not always aligned with demand. According to the report, this constraint, while frustrating for some investors, may contribute to pricing discipline across the market.
The analysis indicates that start-up syndicates launched in the post-COVID period benefited from a favorable environment, despite additional costs and capital requirements.
The period proved advantageous for initiating underwriting operations within Lloyd’s.
Aggregate premium data shows a shift in business mix. Traditional specialty lines have become less prominent, while newer areas like cyber have expanded within the casualty segment. Specialty business, which declined to a low in 2021, has since generated renewed income over the past three years.
The market experienced an increase in exposure following 2021, supported by better pricing conditions.
Although risk-adjusted rate changes apply mainly to renewal business—roughly 70% of total premiums—the LMA considers this a representative measure of pricing trends overall.
Premium growth since 2015 reflects both rate increases and currency effects, pointing to consistent discipline in market expansion strategies.
The number of syndicates has remained near 100 over the last decade, though underlying activity has continued. Lloyd’s initiatives such as the “syndicate in a box” (SiaB) program have supported innovation, allowing concepts to be tested with lower cost exposure.
Several transactions involving reinsurance to close (RITC) and legacy business occurred in 2024, including conversions of existing loss portfolio transfers.
These moves helped syndicates release capital and support growth in a higher-rate environment.
The report, jointly published by the LMA and ICMR, examined market-wide and syndicate-level performance. It reviewed growth patterns and return profiles across different syndicate types and sizes, providing insights into current market trends and investor outcomes.
