Lloyd’s Interim Results H1 2025

September 4^th 2025 – The Lloyd’s Market reported an underwriting profit of £1,505m on a combined ratio of 92.5% for the six months to 30 June 2025 (H1 2024 £3,067m and 83.7%). The investment return was a gain of £3,168m (H1 2024 2,142m), generating an overall pre-tax profit of £4,249m or 21.3% of net premiums earned (H1 2024 profit of £4,916m, 26.1% NPE), equivalent to an annualised return on average capital of 18.8% (H1 2024 22.2%).

The combined ratio deteriorated by 8.8 percentage points (pp), and the attritional loss ratio improved by 0.9pp to 48.3%. The expense ratio deteriorated by 1.3pp to 35.8%. Major claims contributed 10.4% of net premiums earned (H1 2024 3.1%), compared to the 10-year H1 average of c.6%, and driven by the Californian wildfires (net loss £1.7bn, 8.5% NPE). Prior year reserve releases were 2% of net premiums earned (H1 2024 3.1%). Lloyd’s outlook for the FY25 combined ratio remains at 90-95% assuming a normal level of major losses.

The investment profit of £3,168m, representing an investment return of 3.1% (24 H1 2.1%), was driven by higher investment income and unrealised gains driven by growth assets. Lloyd’s outlook for the FY25 investment return remains at around 4%. Asset allocation remains conservative with 72% held in corporate and government bonds and 21% in cash and LOCs. Equities and alternative assets were 7% of the total.

Gross premiums written rose 6.2% to £32.5bn with FX movements (chiefly the US dollar against sterling) generating -2.2% and volume growth 11.9% (split 4.4% new syndicates, 7.5% existing syndicates). Price reductions contributed -3.5%, most notably in Property where competitive pressures in the US open market D&F segment have intensified.

Total capital / net resources, including the Corporation’s subordinated debt, reduced by 7% compared to YE24 to £43.8bn. Lloyd’s Central Solvency Capital Requirement (CSCR) coverage ratio was 468% at 30 June 2025 (FY 2024 435%) compared to Lloyd’s risk appetite / minimum of 200%. The Market-wide Solvency Capital Ratio was 206% at 30 June 2025 (FY 2024 205%).

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