Lloyd’s of London on Thursday reported double-digit annual profit growth and launched a five-year strategy to maximise its performance and efficiency.
The London-based insurance and reinsurance market reported pretax profit of £10.59 billion in 2025, a 10% yearly increase from £9.63 billion in 2024. Gross written premiums grew 4.2% to £57.87 billion from 2024’s £55.55 billion.
Investment returns climbed over 22% to £6.01 billion in 2025 from £4.91 billion, offsetting a 2.0% decline in underwriting profit to £5.21 billion from £5.31 billion in 2024.
The combined ratio worsened to 87.6% from 86.9%, with the underlying ratio also deteriorating to 81.8% from 79.1%. However, Lloyd’s described catastrophe costs as ‘relatively modest’ during the year, being ‘comparatively benign’ in the second half of 2025.
The insurance and reinsurance market announced a five-year strategy with four drivers to ‘sharpen’ its ‘financial edge’.
Lloyd’s eyes a leading underwriting performance, reducing friction and cost through a more efficient marketplace, and maximising its capital advantage to boost returns. In addition, it looks to foster ‘a culture of focus, innovation and talent’.
Chief Executive Patrick Tiernan said: ‘Supported by a very strong balance sheet, these results provide a firm foundation for the challenges and risks ahead, enabling the market to support communities, businesses and economies through periods of uncertainty.
‘Today we are also setting out a new five-year strategy - a disciplined, market-led and necessary sharpening of our financial edge. It focuses on underwriting performance, improving efficiency and maximising our unique capital advantage, to drive improved returns. This is how we will advance and protect Lloyd’s as the pre-eminent global marketplace for insurance risk.’
Lloyd’s added that despite pricing conditions becoming more challenging and volatile, its expectations are unchanged and remain confident in the market’s ambitions.
‘The market’s portfolio continues to demonstrate resilience amid ongoing geopolitical uncertainty and interest rate volatility, underpinned by high quality asset allocation focused on capital preservation, liquidity and effective matching of liabilities,’ it said.
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