Annual Financial Report

Lloyd's reports sustainable, profitable performance in 2024

Lloyd's, the world's leading marketplace for insurance and reinsurance, today announces its full year 2024 financial result. 

The key figures reported in Lloyd's 2024 full year results are: 

· Gross written premium of £55.5bn (2023: £52.1bn) 

· Underwriting result of £5.3bn (2023: £5.9bn) 

· Combined ratio of 86.9% (2023: 84.0%) 

· Underlying combined ratio of 79.1% (2023: 80.5%) 

· Profit before tax of £9.6bn (2023: £10.7bn)

· Attritional loss ratio of 47.1% (2023: 48.3%) 

· Investment return of £4.9bn (2023: £5.3bn)

· Total capital, reserves and subordinated loan notes of £47.1bn (2023: £45.3bn) 

· Central solvency ratio of 435% (2023: 503%) 

Highlights

2024 saw the continuation of positive returns, with profit before tax of £9.6bn (2023: £10.7bn), consisting of an underwriting result of £5.3bn (2023: £5.9bn) and an investment return of £4.9bn (2023: £5.3bn). 

Lloyd's reported a 6.5% increase in premiums written in the market, raising the gross written premium to £55.5bn (2023: £52.1bn), primarily driven by volume of 8.5% (7.6% from existing and 0.9% from new syndicates). Price changes (including rate and inflation) contributed 0.3% as rate momentum stabilised, while foreign exchange movements offset the growth by (2.3)%.

An underlying combined ratio of 79.1% (2023: 80.5%) reflects the market's ongoing focus on consistent profitability. The major claims ratio rose to 7.8% in 2024 due to significant catastrophe events, including hurricanes Milton and Helene and the Baltimore Bridge collision. The strong financial performance was underpinned by an improved attritional loss ratio of 47.1% (2023: 48.3%), prior year releases of 2.4% (2023: 2.2%), and a stable expense ratio of 34.4% to deliver a combined ratio of 86.9% (2023: 84.0%). 

Investment performance in 2024 benefitted from another year of higher interest rates, delivering a return of £4.9bn (2023: £5.3bn) with mark-to-market losses from fourth quarter market volatility driving the reduction in investment returns compared to the prior year. 

The central solvency ratio remains strong at 435% (2023: 503%) reflecting continued market growth and capital management actions to reduce debt. The renewal of the Central Fund cover in 2024 further supports Lloyd's long-term market growth and enhances our financial strength, providing assurance to capital providers and customers alike. Following an upgrade by AM Best in 2024, all four of Lloyd's financial strength ratings are now at AA- or equivalent, the highest ratings Lloyd's has ever achieved. 

John Neal, CEO of Lloyd's, said: "The Lloyd's market has delivered another year of outstanding financial performance, with a superb combined ratio, underlying combined ratio and attritional loss ratio supporting a capital position and claims reserve strength that is as strong as it has ever been.

"This excellent result demonstrates the market's ability to deliver sustainable and attractive returns for investors, and provide solutions to protect our customers' balance sheets. I would like to congratulate members of the market for their disciplined underwriting and profitable growth and thank Corporation employees for their commitment and support in 2024." 

ENDS

About Lloyd's

Lloyd's is the world's leading marketplace for insurance and reinsurance. Through the collective intelligence and expertise of the market's underwriters and brokers, we're sharing risk to create a braver world.

The Lloyd's market offers the resources, capability, and insight to develop new and innovative products for customers in any industry, on any scale, in more than 200 territories.

We're made up of more than 50 leading insurance companies, over 380 registered Lloyd's brokers and a global network of over 4,000 local coverholders. Behind the Lloyd's market is the Corporation: an independent organisation and regulator working to maintain the market's successful reputation and operation.

We're working to build solutions for the most current and prevalent threats. As Chair of the Insurance Task Force for HM King Charles III's Sustainable Markets Initiative, Lloyd's is bringing the industry together to insure the transition to net zero. Our research community is pooling expertise from across the industry to provide cutting edge insight on systemic risks from climate change to cyber security.

And through our digital-led strategy, The Future at Lloyd's, we're making it easier and cheaper to place, price and process cover in the Lloyd's market.

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