Forecasts & Results
Lloyd’s full year results for 2025
Posted 19/03/2026 – Forecasts & Results
Lloyd’s has published its full year results for 2025
Headline figures
- Gross written premium increased by 4.2% to £57.9bn (2024: £55.5bn) reflecting 10.3% of growth and -3.7% rate reduction, and an adverse foreign exchange rate movement of 2.4%.
- The combined ratio deteriorated by 0.7 percentage points to 87.6% (2024: 86.9%).
- The attritional loss ratio deteriorated by 0.8 percentage points to 47.9% (2024: 47.1%) while the expense ratio increased to 35.6% (2024: 34.4%).
- Underlying combined ratio (excluding major losses) of 81.8% (2024: 79.1%).
- Investment return of £6.0bn (2024: £4.9bn).
- Underwriting profit of £5.2bn (2024: £5.3bn).
- Profit before tax increased to £10.6bn (2024: £9.6bn).
- Total capital, reserves and subordinated loan notes of £49.8bn (2024: £47.1bn).
- Central solvency ratio of 496% (2024: 435%).
Patrick Tiernan, CEO of Lloyd’s commented:
‘Strong underwriting performance, disciplined growth, and resilient investment returns underpinned the Lloyd’s market’s result in 2025. Supported by a very strong balance sheet, these results provide a firm foundation for the challenges and risks ahead, enabling the market to support communities, businesses, and economies through periods of uncertainty. While the financial cost of catastrophes in 2025 was relatively modest, we remain acutely aware of the greater, human impact and those whose lives have been affected.
Today we are also setting out a new five-year strategy — a disciplined, market-led and necessary sharpening of our financial edge. It focuses on underwriting performance, improving efficiency and maximising our unique capital advantage to drive improved returns. This is how we will advance and protect Lloyd’s as the pre-eminent global marketplace for insurance risk.’
Results by line of business
| Reinsurance | Property | Casualty | Marine, Aviation and Energy | Specialty | |
| Gross written premium (£m) | 20,053 | 13,026 | 14,682 | 6,826 | 3,250 |
| Accident year ratio (%) | 88.8 | 84.8 | 98.6 | 92.2 | 95.5 |
| Prior year movement (%) | (3.2) | (9.4) | 2.2 | 11.3 | (8.9) |
| Combined ratio (%) | 85.6 | 75.4 | 100.8 | 103.5 | 86.6 |
| Underwriting result (£m) | 2,046 | 2,373 | (87) | (178) | 275 |
Direct property and property reinsurance lines benefited from a favourable prior year development in terms of major catastrophe events helping to deliver strong results. In aviation, the market undertook significant reserve strengthening due to increased estimates for the Russia-Ukraine losses. In primary casualty, there were deteriorations due to loss experience and updates to loss assumptions. Lloyd’s will continue to monitor the casualty market to ensure that discipline is maintained with a particular focus on the adequacy of reserving. There was a slight contraction in the specialty book overall, albeit there was growth in the political risk and credit business. It is noted that macroeconomic and geopolitical uncertainty has simultaneously driven demand but has presented challenges.
2026 Market Outlook
Lloyd’s reported that the outlook for 2026 was for premium to grow from £57.9bn to £64.0bn (+/- 5%). Whilst rates are expected to soften, much of the growth will come from new entrants. A combined ratio of 90-95% continues to be targeted for a ‘normal’ loss year together with an investment return of 3%.
Alpha comment
The Lloyd’s market has delivered another strong set of results with a profit in excess of £10bn. The headline combined ratio of 87.6% is a little below our expectation due to a lower major loss ratio of just 5.8% of premium (2024: 7.8%). It is disappointing to see the expense ratio of 35.6% back at levels last seen in 2021. Prior year releases are also lower than they have been since 2020, improving the combined ratio by 1.7 percentage points. The strong investment return despite the conservative investment approach represents more than half the overall profit before tax. While current market conditions remain attractive, rates are softening in all lines of business and the focus on quality must remain integral as we trade forward into a softening market.
