Lloyd’s provides a trading update for its 2024 Full Year (FY24) financial performance. The full results will be released on 20 March 2025, accompanied by guidance on expectations for Lloyd’s Full Year 2025 results.
Gross written premium rose 6.5% to £55.5bn, reflecting 8.5% growth in the property and reinsurance segments.
Lloyd’s attributed this to strong underwriting performance, a 0.3% price change, and foreign exchange movements.
FY2024 key figures:
- Gross Written Premium increased by 6.5% to £55.5bn (FY 2023: £52.1bn) reflecting 8.5% growth, primarily in the property and reinsurance segments which had a strong underwriting performance in the year, 0.3% price change and FX movements of (2.3)%.
- The market’s combined ratio is 86.9%, an increase of 2.9 percentage points from the prior year (FY 2023: 84.0%), driven by major claims in the second half of the year. Excluding large losses, the underlying combined ratio is 79.1% (FY 2023: 80.5%).
- The attritional loss ratio improved to 47.1% reflecting continued underwriting discipline (FY 2023: 48.3%), while the expense ratio remained flat at 34.4%(FY 2023: 34.4%).
- The investment return is £4.9bn (FY 2023: £5.3bn), with the portfolio benefitting from another year of high interest rates, notwithstanding some market volatility in the fourth quarter.
- Underwriting profit is £5.3bn (FY 2023: £5.9bn) and profit before tax is £9.6bn (2023: £10.7bn).
Lloyd’s estimated a net market loss of about $2.3bn from the wildfires that devastated the Los Angeles area this year.
The market’s combined ratio worsened by 2.9 points to 86.9, mainly due to large claims in the second half of the year. Excluding major losses, the ratio improved to 79.1 from 80.5 last year.
Investment return fell to £4.9bn from £5.3bn in 2023, with the portfolio benefiting from higher interest rates and some market volatility in the fourth quarter.
Chief Financial Officer Burkhard Keese said Lloyd’s remained focused on profitability and disciplined growth. He also expressed sympathy for those affected by the California fires, adding that while the full impact is still under review, it is not expected to affect capital.
2024 saw us maintain our focus on strong profitability and disciplined growth. Our market has delivered another excellent underwriting year for our investors, while providing best in class solutions for our customers to protect their business flows and balance sheets.
Burkhard Keese, Lloyd’s CFO
“We would like to extend our deepest sympathies to those affected by the California fires earlier this year. Although we are still assessing the full impact, we do not expect this to be a capital event,” Burkhard Keese says.
Underwriting profit declined to £5.3bn from £5.9bn a year earlier, while profit before tax dropped to £9.6bn from £10.7bn.
A combined ratio is a measure of an insurer’s underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums.
- A combined ratio of 100% is break even (before taking into account investment returns).
- A ratio less than 100% is an underwriting profit.
- Underlying combined ratio is the combined ratio excluding major claims.
Lloyd’s ratings are AA- (Very Strong) stable outlook with S&P Global, AA- (Superior) stable outlook with AM Best, AA- (Very Strong) stable outlook with Fitch Ratings, AA- (Very Strong) stable outlook with KBRA.
