Lloyd’s closed 2025 with £10.6 bn in profit, up 10.1%, alongside gross written premium of £57.9 bn, a 4.2% increase, while the combined ratio edged up to 87.6% from 86.9%.
Investment income and underwriting discipline pushed balance sheet strength higher, with total capital reaching £49.8 bn, up 5.7%, and the central solvency ratio climbing to 496%, which signals a buffer few markets match right now.
The market paired those results with a new 5-year strategy aimed at tightening financial performance and extracting more value from its capital base, which, honestly, looks like a response to pricing pressure building across several lines.
Premium growth leaned on 10.3% volume expansion, driven by new entrants and existing syndicates scaling exposure, though currency headwinds cut into gains as sterling strengthened against the US dollar.
Pricing moved lower by 3.7%, reflecting competition picking up pace, so growth came more from volume than rate.
Underwriting profit came in at £5.2 bn, slightly below £5.3 bn a year earlier, with the combined ratio rising modestly. The major claims ratio dropped to 5.8% from 7.8%, tied to relatively lighter catastrophe activity in the latter part of the year, which helped offset pressure elsewhere.
The underlying combined ratio increased to 81.8%, still showing discipline across core underwriting, though the shift hints at cost and claims trends creeping in.
Reserve releases added a 1.7% benefit to the combined ratio, down from 2.4% the previous year, as favourable property developments balanced against reserve strengthening in aviation and casualty.
Key financial highlights of the year
| 2025 | 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% | 21% |
| Central solvency coverage ratio | 496% | 435% |
| Market-wide solvency coverage ratio | 200% | 205% |
Attritional losses held steady at 47.9%, while the expense ratio climbed to 35.6%, pushed by higher commissions linked to profitability, acquisition costs tied to business mix, and foreign exchange effects.
Investment returns stepped up to £6 bn, or 5.6%, compared with £4.9 bn and 4.7% in 2024. Fixed income assets generated steady income and realised gains, while equity markets contributed positive performance.
Falling interest rates drove mark-to-market gains across bond portfolios, reinforcing overall returns. According to Beinsure analysts, portfolio positioning still leans heavily on capital preservation and liquidity, which keeps volatility contained even as rate cycles shift.
Capital metrics strengthened further. Total capital, including reserves and subordinated debt, rose to £49.8 bn, supported by retained earnings, while return on capital improved to 22%.
The market-wide solvency ratio dipped slightly to 200% from 205%, though both central and market-level solvency measures remain well above regulatory thresholds.
Chief Executive Patrick Tiernan links the result to underwriting discipline, controlled growth, and consistent investment performance, while acknowledging the uneven impact of catastrophe events, where financial losses stayed manageable but human costs ran deeper.
He positions the new strategy as a recalibration, focused on underwriting outcomes, operational efficiency, and better use of capital to sustain returns through the cycle.
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.
Patrick Tiernan, Lloyd’s Chief Executive
“This is how we will advance and protect Lloyd’s as the pre-eminent global marketplace for insurance risk,” Patrick Tiernan says.
The strategy centres on four priorities, underwriting performance, efficiency gains across the market, capital optimisation, and workforce development tied to innovation and talent.
We think the emphasis on efficiency reflects ongoing friction in placement and processing, where legacy systems still slow execution.
Pricing conditions show signs of softening in parts of the portfolio, and volatility keeps rising across several risk classes, though Lloyd’s maintains its focus on segments where pricing adequacy holds.
The market signals confidence in maintaining performance, even as competitive pressure builds and conditions shift, which feels realistic, though not without risk.
