Lloyd’s Full Year Results – March 2026

The Lloyd’s Market has reported a pre-tax profit of £10,594m for 2025 on a combined ratio of 87.6% (2024: profit £9,626m; 86.9%), being a return of 22% on average capital (2024: 21%). The underwriting result was negatively impacted by a 1.2 point deterioration in the expense ratio, a 0.8 deterioration in the attritional loss ratio, and a 0.7 point reduction in prior year reserve releases all of which more than offset the 2 point reduction in major losses. The investment result was significant and increased by 2.1 points of Net Premiums Earned (NPE) with an increase in investment income and unrealised gains.

The 87.6% combined ratio was lower than SRL’s expectation of a combined ratio of around 90% (Lloyd’s Monitor December 2025) mainly as a result of the very low major loss experience during H2 2025 which only represented around 0.9% of FY 2025 NPE compared to a 10 year H2 average of 7.6%.

Gross Premiums Written (GPW) increased by 4.2% to £57.9bn attributable to 10.3% volume growth (split 7.2% from existing and 3.1% from new syndicates), -3.7% price movements, and -2.4% from foreign exchange movements.

The underwriting result was a profit of £5,208m (2024: £5,314m). The loss ratio was 52.0% (2024: 52.5%) with major losses (mainly the Californian wildfires) contributing a reduced and below-average 5.8% of NPE (2024: 7.8%; 10-year average 9.7% excluding COVID). The attritional loss ratio deteriorated to 47.9% of NPE (2024: 47.1%). Prior year releases reduced to 1.7% of NPE (2024: 2.4%), with releases in Direct and Reinsurance Property lines but strengthening required in Aviation and Direct Casualty; 2025 was Lloyd’s 20^th consecutive year of overall prior year releases. The expense ratio deteriorated to 35.6% (2024: 34.4%) with the total expense ratio deteriorating to 37.0% of NPE (2024: 35.7%).

Investment returns increased and were significant at 14.3% of NPE (2024: 12.2%) with the fixed income portfolio benefiting from still relatively high interest rate yields the fall in which contributed to unrealised gains.

Lloyd’s overall profit of 25.2% of NPE compares to a profit of 23.8% NPE in 2024. The 2025 profit was higher than SRL’s expectation of a bottom-line profit of 19% – 24% NPE (Lloyd’s Monitor December 2025) mainly as a result of the very low major loss experience during H2 2025.

SRL notes that the accident year combined ratio excluding major losses deteriorated by 2 points to 83.5% (calendar year combined ratio excluding major losses 81.8%, net of prior year releases) but still compares favourably to the 10-year and 5-year average major claims (excluding COVID) for Lloyd’s of 9.7% and 8.2% NPE respectively. The improvements following Lloyd’s Performance Review of 2018 and the benefits of price increases in recent years, notwithstanding the price reductions in 2025, have continued to flow through to the reported results.

For 2026, SRL expects Lloyd’s to benefit from previous portfolio remediation action including the re-underwriting of Cat risk, and the commitment to expense discipline despite expenses increasing during 2026. However, unless the level of major losses is very low and against a backdrop of price decreases in 2025 and declining rate adequacy at a market level, it is unlikely that 2026 will match 2025’s underwriting and investment performance. For 2026, Lloyd’s is forecasting a combined ratio of 90-95% assuming a normal level of major losses, and an investment return of 3% (25: 5.6%).

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