Lloyd’s Interim Results H1 2026 – September

September 3^rd, 2026 – The Lloyd’s Market reported an underwriting profit of £1,919m on a combined ratio of 90.8% for the six months to 30 June 2026 (H1 2025 £1,505m and 92.5%). The investment return was a gain of £1,795m (H1 2025 3,168m), generating an overall pre-tax profit of £3,536m or 17.0% of net premiums earned (H1 2025 profit of £4,249m, 21.3% NPE), equivalent to an annualised return on average capital of 14.4%* (H1 2025 18.6%).

The combined ratio improved by 1.7 percentage points (pp), and the attritional loss ratio deteriorated by 2.8pp to 51.1%. The expense ratio deteriorated by 0.6pp to 36.4%. Major claims were 6.8% of net premiums earned (H1 2025 10.4%), compared to the 10-year H1 average of c.6.5%, and were accounted for by the Middle East conflict (net loss £1.4bn). Prior year reserve releases were 3.5% of net premiums earned (H1 2025 2.0%). Lloyd’s outlook for the FY26 combined ratio remains at 90-95% assuming a normal level of major losses.

The investment profit of £1,795m, representing an investment return of 1.6% (H1 25 3.1%), was driven by a similar amount of investment income as H1 25 but in contrast contained unrealised losses on the fixed income portfolio as a result of increasing yields. Lloyd’s outlook for the FY26 investment return remains at 3%. Asset allocation remains conservative with 71% held in corporate and government bonds and 21% in cash and LOCs. Equities and alternative assets were 8% of the total.

Gross premiums written rose 6.9% to £34.7bn with FX movements generating -2.2% (due to a stronger average sterling exchange rate against the US dollar) and volume growth 15.8% (split 6.6% new syndicates, 9.2% existing syndicates). Price reductions contributed -6.7%, across a range of classes, particularly in Property and Reinsurance.

Total capital / net resources, including the Corporation’s subordinated debt, reduced by c.3% compared to YE25 to £48.4bn. Lloyd’s Central Solvency Capital Requirement (CSCR) coverage ratio was 503% at 30 June 2026 (FY 2025 496%) compared to Lloyd’s risk appetite / minimum of 200%. The Market-wide Solvency Capital Ratio was 199% at 30 June 2026 (FY 2025 200%).

*SRL’s definition of capital includes both equity and debt. Returns on capital are prior to interest with 2x H1 results being used as an annualised figure. 

Independent and Experienced in Lloyd’s Syndicate Research

Syndicate Research Limited (SRL) provides in-depth research, analysis and commentary on all trading syndicates operating in the Lloyd’s of London insurance market.

Syndicate Continuity Opinions (SCOs) – taking into account cross-cycle Returns on Capital and Group support – have been assigned to active syndicates representing some 75% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing c.90% of the market’s capacity.

With a combined experience of the Lloyd’s market of over 50 years, our team produces research which is used by clients the world over.

We value our independence; we do not accept payment from the syndicates or managing agents for coverage of their businesses.

In 2026, the business is celebrating 30 years of covering all Lloyd’s syndicates.

Our Experience

• Recognised by Moody’s Investors Service (Moody’s) as one of the pre-eminent Lloyd’s market research teams: Moody’s acquired the business in 1998 with the business remaining part of Moody’s Corporation until 2014.

• Identification of ceasing P&C Syndicates in 2017-20 downturn; non-aligned capital losses of £258m: Of the 12* P&C syndicates (non-SPA) which ceased during 2017-20, all had negative opinions prior to ceasing.

Using SRL’s negative opinions, the cumulative losses that could have been avoided* by third party capital in the 3-years prior to the year that the syndicate ceased were: Traditional Names: £56.4m. All non-aligned capital: £257.9m

* Please refer to our ‘About Us’ page for further information.

• Specialist research company of choice for Broker Market Security departments: The team has been providing Lloyd’s research to some of the major Lloyd’s brokers for over 25 years.

• Portfolio analysis for £250m portfolio: Research provider of choice to deliver a quarterly board report derived from QMR and business plan data on a £250m portfolio and its underlying syndicate participations.

• COVID analysis: First independent research entity to state that Lloyd’s COVID losses were entirely manageable.

• Recognised for correct assessment of the impact of the World Trade Center (WTC; 9/11) losses on Lloyd’s: The team correctly highlighted the extent of the pressure on Lloyd’s Financial Strength and the potential impact on solvency following the WTC attacks, and was correct in its view that the market would recapitalise.