Howden Re has released its latest analysis of Lloyd’s of London syndicates, offering a detailed overview of syndicate performance, capacity trends, underwriting appetite, and line-of-business profitability across the market.
Lloyd’s ended 2024 with its second consecutive year of nearly £10 billion in pre-tax profit, despite a slight increase in the combined ratio. The market’s gross written premium (GWP) grew, primarily driven by an expansion in property lines.
Michelle To (pictured above left), head of business intelligence at Howden Re, said Lloyd’s has shown resilience and adaptability in the current environment of heightened risk premia.
“The Society closed 2024 with a second consecutive year of nearly £10bn in pre-tax profit, in spite of a modest combined ratio uptick,” To said.
David Flandro (pictured above right), head of industry analysis and strategic advisory at Howden Re, noted that the results come as pricing tailwinds have diminished.
“The growth focus is clearly shifting to disciplined exposure management. Lloyd’s ability to adapt – through strategic capacity deployment, refined risk selection and investment in underwriting talent – will be critical in navigating the next phase,” he said.
Lloyd’s financial performance in 2024 showed a gross written premium of £55.5 billion, an increase of 6.5% from the previous year. The underwriting result stood at £5.3 billion, supporting a profit before tax of £9.6 billion.
The market's combined ratio came in at 86.9%, with an underlying combined ratio of 79.1%, while investment returns reached £4.9 billion.
In 2024, the combined ratio saw a modest rise, influenced by large losses such as the Dali Bridge collapse and hurricanes Milton and Helene. (AC) The collapse of the Francis Scott Key Bridge in Baltimore alone resulted in a £500 million loss for Lloyd’s, contributing to a major claims ratio of 7.8% for the year.
These events tested the market’s loss-absorbing capacity but did not significantly disrupt overall profitability, reflecting the strength of its underwriting discipline and diversified portfolio.
However, profitability remained supported by better attritional loss ratios and strong investment returns. Property lines continued to play a significant role, contributing 44% to total underwriting profit.
Shifting growth dynamics were also evident, as volume expansion became the primary driver of premium growth. In 2024, pricing gains added just 0.3% to the overall premium growth, a substantial drop from 7.2% in 2023. Meanwhile, volume increases accounted for 8.5%, partially offset by a negative impact of 2.3% from foreign exchange movements.
The reduced reliance on pricing improvements indicates a maturing phase in the underwriting cycle and highlights the market’s focus on expanding its footprint in targeted risk segments.
Total market capacity increased to £56 billion. However, the proportion held by the top 10 syndicates declined to 37%, compared to 39% in 2023. Smaller and medium-sized syndicates recorded growth, and the number of startups reached a five-year high, signaling a shift toward agility and specialized expertise.
Risk appetite across the market is undergoing changes. Several syndicates reduced their exposure to casualty, cyber, and marine lines due to pricing challenges and geopolitical risks. At the same time, interest in property and specialty lines increased, with some syndicates expanding their presence in these sectors.
Property and reinsurance lines continued to lead both in premium growth and profitability. Property GWP among the top 10 syndicates recorded an 18.7% compound annual growth rate (CAGR), while reinsurance posted a 26.5% CAGR.
Casualty lines, despite ongoing market volatility, achieved a second consecutive year with combined ratios under 100%, reflecting an improvement in the segment’s fundamentals.
Lloyd’s projects a premium target of £60 billion for fiscal year 2025, up from £57 billion in 2024. With pricing growth slowing – 0.3% in 2024 compared to 7.2% the previous year – the focus is expected to move toward volume increases and underwriting discipline.
According to the report, the ability to adjust through strategic capacity management, refined risk selection, and investment in underwriting resources will continue to play a key role in the market's future growth.
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