Lloyd’s Market Association and Insurance Capital Markets Research have reported sustained investor interest in the Lloyd’s of London market, supported by strong syndicate performance and robust capital levels, according to their 2026 Insights Report.
The report, which analyses year-end results for 2025, found that managing agents delivered a profit before tax of £10.6 billion, up 10.1% from the previous year. The combined ratio stood at 87.6%, compared with 86.9% in 2024, while the underlying combined ratio rose to 81.8% from 79.1%. Total capital increased to £49.8bn, up 5.7%, and the central solvency coverage ratio reached 496%.
The findings mark a third consecutive year in which return on capital exceeded 20%, reflecting what the report described as disciplined underwriting and continued support from prior-year reserve releases, which contributed a 1.7% benefit to the combined ratio.
The report also indicated that Lloyd’s is entering the next phase of the underwriting cycle from a position of strength, despite early signs of price softening in certain classes. It noted that maintaining underwriting discipline, attracting new entrants, and reducing friction in capital deployment would be key to sustaining performance.
Investment income remained a key driver of profitability. Higher interest rates lifted investment returns to £6.0bn in 2025, compared with £4.9bn a year earlier, reinforcing the market’s appeal as a diversified investment proposition with low correlation to traditional asset classes.
According to the report, Lloyd’s continues to offer a competitive relative value proposition, delivering strong returns with comparable volatility while outperforming benchmarks such as catastrophe bond indices. It also highlighted the role of vehicles such as London Bridge II in supporting increased deployment of risk capital and attracting new investors.
“2025 was another strong year for the Lloyd’s market,” said Paul Davenport, finance and risk director at the LMA. “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.”
