Insurance Capital Markets Research (ICMR) and the Lloyd’s Market Association (LMA) have released their second annual Lloyd’s 2025 Insights Report, providing an in-depth analysis of Lloyd’s and its syndicates’ financial results for the year ending December 31, 2024.
The report shows that Lloyd’s has continued to generate strong returns for investors, with profits for 2024 just shy of the previous year’s record. The positive performance was driven by favourable trading conditions and a return to more normal investment valuations. Despite several major claims events in 2024, including two US hurricanes, nearly all syndicates reported an underwriting profit.
For the 2024 financial year, Lloyd’s reported gross written premiums of £55.5 billion and a pre-tax profit of £9.6 billion, continuing to offer an attractive return on capital. This performance stands out due to its low correlation with other asset classes, making it an appealing option for investors.
Major claims for the year accounted for 7.8% of premiums, higher than the 2023 figure but still below the long-term average of around 10%. The expense ratio remained stable at 34.4%. The report also looks at how distribution channels impact acquisition costs and the overall combined ratio.
The report highlights the role of Lloyd’s performance management framework, introduced in 2003, in improving long-term underwriting results. The RISX equity index, which tracks listed specialty re/insurers with underwriting operations at Lloyd’s, indicates growing investor confidence in the market’s ability to deliver consistent positive returns.
Paul Davenport, finance & risk director at the LMA, said nearly all syndicates made underwriting profits in 2024, despite the challenges posed by major claims. He noted that the level of claims, though higher than in 2023, remained below long-term averages. Davenport also pointed out that the post-COVID period had proved to be a good time for new syndicates to enter the market, despite the additional capital requirements and costs they face.
Markus Gesmann, co-founder of ICMR, said that while Lloyd’s outperformed many other asset classes, the issue of capital deployment remains key. He suggested that models such as the ‘barbell’ strategy, initially deploying liquid capital before scaling up Funds at Lloyd’s—could improve efficiency and meet the deployment needs of investors.
The report comes amid growing efforts by the LMA to strengthen the Lloyd’s market. The LMA has outlined its strategic priorities for 2025, with a focus on advancing digitisation, regulatory advocacy, technical expertise, and market culture. A major initiative, Blueprint Two, aims to simplify market operations through digital innovation and better data standardisation. In collaboration with the London Market Group’s Data Council, the LMA is working to streamline data integration across various placement methods.
The LMA has also launched a new regulatory engagement programme aimed at representing members’ interests in the UK, EU, and US. A key goal is to ensure that commercial and specialty insurance is recognised separately within broader regulatory frameworks.
