Lloyd’s, the specialist insurance and reinsurance marketplace, generated gross written premium (GWP) of £32.5 billion in the first half of 2025, while the underwriting result contracted to £1.5 billion as the Los Angeles, California wildfires pushed the combined ratio to 92.5%.
The underwriting result declined by 52% year-on-year as the combined ratio deteriorated but remains healthy. Excluding major claims of 10.4%, Lloyd’s reports that the underlying combined ratio of 82.1% and the attritional loss ratio of 48.3% remain in line with expectations.
Additionally, prior year reserve releases provided a 2.0% benefit to the combined ratio in H1’25, including reserve releases linked to improvements in catastrophe events, notably Hurricanes Helene and Milton, partly offset by strengthening in aviation reflecting updated Ukraine loss estimates.
The Lloyd’s expense ratio rose 1.3% to 35.8% with higher gross commissions and staff costs reported by the market in the period.
On investments, Lloyd’s has today reported an investment return of £3.2 billion or 3.1% for H1’25, compared with £2.1 billion and 2.1% in H1’24. The result comprised both strong income and realised gains, supported by higher reinvestment yields and a favourable rate environment, explained Lloyd’s.
All in all, the Lloyd’s market generated profit before tax of £4.2 billion for the first half of 2025, a 15% decrease from the £4.9 billion reported in the prior year.
“Lloyd’s syndicates delivered a solid half year performance, demonstrating strength and resilience. While major claims returned to expected levels – driven by the devastating California wildfires – disciplined underwriting ensured the underlying result had the capacity to absorb such volatility. Investment performance was strong, and the market’s capital position and solvency ratios provide a very good foundation for future growth,” said Patrick Tiernan, Chief Executive Officer.
Lloyd’s also reported today that its capital position remains very strong, with total capital, reserves, and subordinated loan notes of £43.8 billion at 30 June 2025, compared with £47.1 billion at the end of 2024.
The central solvency ratio increased to 468% from 435% at year-end 2024, and the market-wide solvency ratio rose to 206% from 205%, both well above regulatory requirements.
“Looking ahead, despite a more challenging pricing environment and heightened uncertainty, the market continues to innovate and expand the global reach of the Lloyd’s platform through existing participants, new entrants and a strong pipeline of businesses looking to join the market. Our focus remains on facilitating sustainable and attractive returns on capital through the economic cycle for all market participants,” added Tiernan.
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