Lloyd’s Reports Lower 2024 Profit Despite Growth in Premiums
London, March 20, 2025 – Lloyd’s, a leading re/insurance market, reported a profit before tax of £9.6 billion for 2024, a decrease from £10.7 billion in 2023. This decline coincided with an increase in the major claims ratio, primarily due to several large-scale catastrophe events.
The claims ratio rose to 7.8%, reflecting the impact of major events such as Hurricanes Milton and Helene, as well as the Baltimore Bridge collision. Despite these challenges, Lloyd’s maintained a stable expense ratio of 34.4%, according to the company.
The underwriting result also decreased to £5.3 billion, compared to £5.9 billion in the previous year. However, Lloyd’s saw an improved attritional loss ratio of 47.1%, down from 48.3% in 2023, and prior year releases of 2.4%, slightly higher than the 2.2% recorded the year before.
Although not included in the full-year results, Lloyd’s previously estimated its net losses from the California wildfires to be approximately US$2.3 billion based on available information.
Despite the slight dip, Lloyd’s CEO, John Neal, emphasized the market’s strong financial performance, highlighting underwriting discipline and capital strength.
Gross written premium for the year increased to £55.5 billion, up from £52.1 billion in 2023, representing a 6.5% increase. This growth was driven mainly by an 8.5% rise in volume, including 7.6% from existing syndicates and 0.9% from new entrants. Price changes contributed 0.3% as rate momentum stabilized, while foreign exchange movements reduced the overall increase by 2.3%.
The overall combined ratio stood at 86.9%, compared to 84.0% a year earlier, while the underlying combined ratio improved to 79.1% from 80.5%. Investment returns totaled £4.9 billion, also down from £5.3 billion in 2023. Lloyd’s attributed the decrease to mark-to-market losses from fourth-quarter market volatility, although overall performance remained supported by higher interest rates throughout the year.
Lloyd’s central solvency ratio stood at 435%, down from 503% the prior year. The market cited continued growth and capital management initiatives aimed at reducing debt as contributing factors. The renewal of the Central Fund cover in 2024 supported long-term market stability and financial strength.
Lloyd’s financial strength ratings reached their highest levels following an upgrade by AM Best in 2024, with all four ratings now at AA- or equivalent.
