Lloyd’s, the world’s leading insurance and reinsurance market, today announced its results for the first six months of 2025 with gross written premium increasing to £32.5bn (HY 2024: £30.6bn) and a combined ratio of 92.5% (HY 2024: 83.7%). The market remains on track to deliver the Full Year Results previously guided.
Key financial highlights
| HY 2025 | HY 2024 | |
| Gross written premium | £32.5bn | £30.6bn |
| Underwriting result | £1.5bn | £3.1bn |
| Combined ratio | 92.5% | 83.7% |
| Underlying combined ratio | 82.1% | 80.6% |
| Profit before tax | £4.2bn | £4.9bn |
| Investment return | £3.2bn | £2.1bn |
| HY 2025 | FY 2024 | |
| Total capital, reserves and subordinated loan notes | £43.8bn | £47.1bn |
| Return on capital (rolling) | 20.7% | 21.0% |
| Market-wide solvency coverage ratio | 206% | 205% |
| Central solvency coverage ratio | 468% | 435% |
“Lloyd’s syndicates 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. Investment performance was strong, and the market’s capital position and solvency ratios provide a very good foundation for future growth.Patrick Tiernan, Chief Executive Officer, Lloyd's
“Looking ahead, despite a more challenging pricing environment and heightened uncertainty, the market continues to innovate and expand the global reach of the Lloyd’s platform through existing participants, new entrants and a strong pipeline of businesses looking to join the market. Our focus remains on facilitating sustainable and attractive returns on capital through the economic cycle for all market participants.”
Premium growth
Gross written premium increased by 6.2% to £32.5bn (HY 2024: £30.6bn), driven by volume growth of 11.9% (HY 2024: 5.0%) from new and existing syndicates. The positive impact from volume was partially offset by adverse foreign exchange movements of (2.2)% (HY 2024: (2.1)%) as sterling strengthened against the US dollar, and by a negative price change of (3.5)% (HY 2024: +1.5%), though rates in most segments remain adequate.
Underwriting result and combined ratio
The market reported an underwriting result of £1.5bn (HY 2024: £3.1bn), with the combined ratio rising to 92.5% (HY 2024: 83.7%) driven primarily by the impact of the California wildfires in the first quarter of 2025. Excluding major claims of 10.4% (HY 2024: 3.1%), the underlying combined ratio of 82.1% (HY 2024: 80.6%) and the attritional loss ratio of 48.3% (HY 2024: 49.2%) remain in line with expectations. Prior year reserve releases provided a 2.0% (HY 2024: 3.1%) benefit to the combined ratio, including reserve releases linked to improvements in catastrophe events (Hurricanes Helene and Milton), partly offset by strengthening in aviation reflecting updated Ukraine loss estimates. The expense ratio rose 1.3% to 35.8% (HY 2024: 34.5%) with higher gross commissions and increased staff costs reported by the market in the first half of the year.
Investment performance
The Lloyd’s market generated an investment return of £3.2bn or 3.1% (HY 2024: £2.1bn, 2.1%). The result comprised strong income and realised gains, supported by higher reinvestment yields and a favourable rate environment, as fixed income markets rebounded and pricing improved across key asset classes. The portfolio remained resilient despite rate divergence among major central banks, geopolitical tensions, and steepening yield curves, reflecting a well-balanced allocation across asset classes, which has remained focused on capital preservation and consistent return generation.
Capital and solvency
Lloyd’s capital position remains very strong, with total capital, reserves, and subordinated loan notes of £43.8bn (FY 2024: £47.1bn) at 30 June 2025, with the reduction primarily reflecting the return of capital to members following the strong performance of the closing underwriting year. The central solvency ratio increased to 468% (FY 2024: 435%), while the market-wide solvency ratio rose to 206% (FY 2024: 205%), both well above regulatory requirements. These improvements were primarily driven by a reduction in the solvency capital requirement, largely attributable to the strengthening of sterling during the period. Lloyd’s financial strength continues to be recognised by rating agencies, with current ratings of A+ (AM Best) and AA- (Fitch, KBRA, and S&P Global).
Strategic focus and outlook
The Lloyd’s market is entering a pivotal phase; systemic risk is growing and pricing is softening. Market participants need to remain vigilant and disciplined. Lloyd’s is focused on delivering a refreshed strategy by March 2026, which is being guided by extensive stakeholder input. It will prioritise sustainable returns, disciplined execution, and reduced cost and complexity for the market. Strengthening operating infrastructure to support growth and resilience remains a priority for ensuring the long-term sustainability of the market. The Corporation will support market participants by focusing on core activities, investing only where Lloyd’s has clear advantage and fostering innovation. Lloyd’s is committed to building on current momentum and catalysing its unique strengths to support our members and secure our future as the preeminent global market for risk.
Notes to Editors:
- 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.
- An underlying combined ratio is the combined ratio excluding major claims.
- Return on capital is the ratio of the result before tax for the most recent 12-month period to the average of opening and closing total capital and reserves over the same period.
- Lloyd’s financial strength ratings are AA- (Very Strong) stable outlook with S&P Global, A+ (Superior) stable outlook with AM Best, AA- (Very Strong) stable outlook with Fitch Ratings, AA- (Very Strong) stable outlook with KBRA.