The Lloyd’s market generated a return on capital above 20% for a third consecutive year in 2025, according to AM Best. Profit before tax reached £10.6 bn and return on capital was 22%, extending a period of stronger earnings after years affected by low interest rates, softer underwriting conditions and catastrophe losses.
Lloyd’s record pre-tax profit remains £10.7 bn, reported in 2023. The market followed that with £9.6 bn in 2024 and £10.6 bn in 2025.
Underwriting has been profitable in each of the past five years. Lloyd’s generated a cumulative underwriting result of £20.8 bn between 2021 and 2025, according to the report.
AM Best said the improvement occurred despite economic volatility, geopolitical uncertainty and continued major claims. Recent large-loss experience, however, has been lower than in several earlier years.
The combined ratio has remained cyclical over the longer term. AM Best attributed much of that volatility to catastrophe exposure and changes in underwriting pricing conditions.
Despite recent returns, Lloyd’s 10-year average return on capital remains below 10%. Periodic large losses continue to create substantial earnings volatility, with underwriting results responsible for much of the variation.
The largest Lloyd’s syndicates have remained relatively stable over the past decade. Nine of the ten largest syndicates in 2025 were also among the top ten in 2015.
- Lloyd’s had more than 100 syndicates in 2025. The ten largest accounted for 37% of gross written premium, while syndicates ranked 11th through 20th represented another 19%.
- The remaining approximately 90 syndicates accounted for 44% of market premium. The top 20 syndicates have consistently represented more than half of Lloyd’s GWP during the past decade.
Premium volumes have increased substantially over that period as many syndicates benefited from harder pricing conditions. AM Best said growth has been broad across most major classes.
Around two-thirds of Lloyd’s GWP is written as direct insurance. Reinsurance accounts for roughly one-third, with the business spread across property, casualty and specialty classes.
Lloyd’s syndicates wrote £20.2 bn of inward reinsurance GWP in 2025, up 4% from the previous year. Several of the largest syndicates each wrote more than £1 bn of reinsurance premium during the year.
Growth in inward reinsurance has been strong in recent years, although the pace slowed in 2025. AM Best said the segment remains diversified across several major reinsurance classes.
Property remained Lloyd’s largest primary insurance line, with £14.3 bn of GWP in 2025. Tokio Marine Kiln was the largest property writer, generating more than £1 bn in premium.
- Property GWP recorded a five-year compound annual growth rate of 13%. Growth reversed in 2025, however, with premium declining 2% from 2024 because of risk-adjusted rate reductions and foreign exchange movements.
- Liability syndicates wrote £12.7 bn of GWP in 2025. Beazley’s Syndicate 2623 remained the largest liability writer with £761 mn despite reducing its casualty business during the year.
The liability segment has benefited from compounded rate increases over recent years, although annual premium growth has been uneven. Casualty pricing conditions are now becoming more competitive in several areas.
Marine, Aviation and Energy generated £5.9 bn of GWP in 2025. Twenty-one syndicates each wrote more than £100 mn, led by Canopius with almost £500 mn.
The segment recorded a five-year compound annual GWP growth rate of 9%. Its gross loss ratio has been considerably more volatile, ranging from 48% in 2015 to 74% in both 2017 and 2024.
Lloyd’s attritional loss ratio remains a useful measure of the underwriting cycle. In 2025, both the expense ratio and attritional loss ratio increased, although lower large losses and continued prior-year reserve releases offset part of that deterioration.
AM Best expects competitive pricing to put further upward pressure on the attritional loss ratio during 2026. A return toward more normal large-loss experience could also push the overall combined ratio higher.
Lloyd’s entered 2026 with room for some deterioration after reporting a combined ratio below 90% in 2025. AM Best said the ratio could rise and still remain within the target range of many market participants.
