Insights
Lloyd’s has released its unaudited preliminary results for 2024
Posted 10/03/2025 – Insights
Lloyd’s has published its unaudited preliminary results for 2024.
Headline figures
- Gross written premium increased by 6.5% to £55.5bn (FY 2023: £52.1bn) reflecting 8.5% of growth and 0.3% rate increase, offset by foreign exchange rate movements of -2.3%
- The combined ratio has deteriorated by 2.9 percentage points to 86.9% (FY 2023: 84.0%)
- The attritional loss ratio improved by 1.2 points to 47.1% (FY 2023: 48.3%) while the expense ratio remained flat at 34.4% (FY 2023: 34.4%)
- Investment return is reported to be £4.9bn (FY 2023: £5.3bn), with the portfolio benefiting from another year of high interest rates, notwithstanding some market volatility in the fourth quarter
- Underwriting profit reduced to £5.3bn (FY 2023: £5.9bn)
- Profit before tax reduced to £9.6bn (FY 2023: £10.7bn)
Burkhard Keese commented on the preliminary result:
“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.”
Alpha comment
Lloyd’s has posted another impressive result on a preliminary basis for 2024 with a combined ratio of 86.9%, despite a year of heightened major losses which included Hurricanes Milton and Helene. Premium income grew by 8.6%, while overall rates held flat – an encouraging sign given the stage of the market cycle and the strong returns being achieved across the (re)insurance sector. The reduction in the attritional loss ratio is impressive, showing the lowest level of attritional losses ever reported for the market. We calculate the major loss ratio to be 7.8% as compared with 3.1% in 2023 (an exceptionally low major loss year) but less than the 12.7% reported for 2022. These figures do not account for the recent LA wildfires, for which Lloyd’s expects total claims to be $2.3bn. We also calculate a release from the prior years’ reserves of 2.4%, up from 2.2% reported for 2023, and perhaps higher than our expectation, based on shortfalls reported on the 2021 & prior years within the results for the current closing 2022 year. It is disappointing that the expense ratio has not reduced and we hope this will continue to be one of the main targets for new Lloyd’s CEO and Chairman.
