Lloyd’s 1H25 trading statement

Lloyd’s today reported its half year results for 2025.

Headline figures

• Gross Written Premium (GWP) increased by 6.2% to £32.5bn (1H24: £30.6bn)
• Expense ratio of 35.8% (1H24: 34.5%)
• Underwriting return of £1.5bn (1H24: £3.1bn)
• Investment return of £3.2bn equivalent to 3.1% (1H24: £2.1bn or 2.1%)
• Combined ratio of 92.5% (1H24: 83.7%)
• Profit before tax of £4.2bn (1H24: £4.9bn)
• Central solvency coverage ratio of 468% (1H24: 435%)

Patrick Tiernan Chief Executive Officer, said:

“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. 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.”

Patrick Tiernan, Alex Cliff (Chief Financial Officer) and Rachel Turk (Chief of Market Performance) presented the Half Year Results 2025 this morning.

The key takeaways were as follows:

• The market is on target to achieve its 2025 FY guidance with GWP of £60bn ±5%, a combined ratio of 90% to 95% and an investment return of circa 4%.
• The market has experienced rate changes of -3.5% to date.
• £14.1bn of claims have been paid so far this year.
• We have achieved premium growth 6.2% to date of which 4.4% was from new syndicates and 7.5% was from existing syndicates, offset by rate reductions and FX losses (-2.2%).
• The return on capital for the half year is 20.7%, above the 7 year average of 9.2%, and this continues to be a key focus of Lloyd’s across the cycle.
• Lloyd’s will increase its oversight on underwriters who reported adequate rate yet consistently deliver combined ratio of over 100%.

Early view of 2026 year of account:

• GWP expectation of £66bn equivalent to a 9.6% growth on 2025 forecast income. Syndicates are remaining focused on managing their portfolios and growing in areas with the most attractive margins.
• Net combined ratio of 91.5%, a 1.3 point increase on the latest 2025 forecast.
• Lloyd’s will continue to support new syndicates who want to bring new business to Lloyd’s, new territories and new captive opportunities to the market.

Blueprint Two update:

• The re-platforming will be delayed until at least 2028 and legacy systems will be operational until at least 2030.
• The increased timeline at this stage will not involve any increased levy or capital raise.
• Recommitment from Lloyd’s executive team to manage expectations and provide regular updates on milestones.