Lloyd’s of London remains a compelling proposition for investors, supported by robust syndicate performance and improving balance sheet strength, according to analysis from the Lloyd’s Market Association and Insurance Capital Markets Research.

The Lloyd’s 2026 Insights Report, reviewing year-end results for 31 December 2025, highlights sustained profitability, rising capital levels and increased participation from new entrants. Managing agents delivered a full-year profit before tax of £10.6bn in 2025, up 10%, with a combined ratio of 88% compared with 87% in 2024. Total capital increased to £49.8bn, up 6%, while the central solvency coverage ratio reached 496%. Underlying combined ratio rose to 82% from 79%, with prior year reserve releases providing a 2% benefit. The result marked a third consecutive year of returns on capital above 20%.

The analysis also found Lloyd’s continued to compare favourably with other investment options, delivering strong returns with low correlation to mainstream asset classes and outperforming catastrophe bond indices.

Paul Davenport, finance and risk director at the LMA, commented: “2025 was another strong year for the Lloyd’s market. 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%.”

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