The latest insights from the LMA for you;
The Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR) have released the Lloyd’s 2026 Insights Report, to which LMA members have digital access. The report provides a detailed analysis of Lloyd’s and syndicates’ 31/12/2025 year-end results.
The report reveals that, with individual syndicates delivering strong results, Lloyd’s remains well positioned as a compelling proposition to investors. The market has seen an increasing number of new entrants and a growth in risk capital deployed through London Bridge II.
Key findings from the report include:
- Strong performance continues across the market
Managing agents delivered a full‑year result in 2025 of profit before tax of £10.6bn (+10.1%) and a combined ratio of 87.6% (2024: 86.9%). Underwriting and investment returns have further strengthened the market’s balance sheet, with total capital reaching £49.8bn (+5.7%) and the central solvency coverage ratio at 496%. The underlying combined ratio rose to 81.8% (2024: 79.1%), reflecting disciplined underwriting alongside a modest increase in expense and attritional loss ratios, while prior‑year reserve releases provided a 1.7% benefit to the combined ratio. This result represents the third consecutive year where return on capital has exceeded 20%.
- Entering the next phase of the cycle from a position of strength
While signs of price softening are evident in some classes, the 2025 results confirm that Lloyd’s enters this next phase with strong capitalisation. However, the LMA view is that for Lloyd’s to successfully navigate the next phase of the cycle, three things are necessary: maintaining disciplined underwriting, new entrants which are additive to the market and reduced friction in capital deployment.
- Investment returns remain a powerful contributor to total performance
Higher interest rates enhanced investment returns in 2025 to £6.0bn (2024: £4.9bn). Investment results contributed meaningfully to overall profitability and reinforce Lloyd’s attractiveness as a diversified investment proposition with low correlation to traditional asset classes.
- A compelling relative value proposition for investors
In 2025, Lloyd’s continued to demonstrate its attractiveness relative to other investment options, delivering strong returns, comparable levels of volatility and low correlation to mainstream asset classes, while outperforming benchmarks such as catastrophe bond indices and providing diversification benefits not readily available elsewhere in global capital markets.
The full report, available to LMA members, offers a deeper understanding of the drivers and trends underlying Lloyd’s performance for managing and members’ agents, brokers and investors. It highlights that Lloyd’s is still seen as an attractive place to invest, as demonstrated by the increasing confidence of investors in placing capital at Lloyd’s.
Paul Davenport, Finance & Risk Director at the LMA, said: “2025 was another strong year for the Lloyd’s market. In the past year, Lloyd’s has upheld its position as an attractive option for investors, buoyed by disciplined underwriting and a focus on rate adequacy across the market. 2025 is the third consecutive year with average returns on capital exceeding 20%.”
Markus Gesmann, Co-Founder of ICMR, added: “Ultimately, Lloyd’s remains one of the financial industry’s ‘hidden secrets’ and a vital contributor to the UK economy. By providing this level of data-driven transparency through our publications and indices, ICMR aims to demystify the market and make Lloyd’s performance more accessible to the global investment community.”
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