’We’re talking about total innovation, actually bringing risk to the fore so that it can be the difference between taking a risk or not. That returns Lloyd’s to its roots of being a market first,’ says chief executive
Lloyd’s of London this morning (19 March 2026) outlined its future focus on “underwriting performance, improving efficiency” and “maximising its unique capital advantage” as part of a new five year strategy.
Announced alongside its full year financial results for 2025, in which the market posted an improved combined operating ratio (COR) of 84.2%, the strategy is intended to “advance and protect Lloyd’s as the pre-eminent global marketplace for insurance risk”.
In a statement, Lloyd’s chief executive Patrick Tiernan added: ”We are setting out a new five year strategy – a disciplined, market-led and necessary sharpening of our financial edge.
“It focuses on underwriting performance, improving efficiency and maximising our unique capital advantage to drive improve returns.”
The financial statement added that, while pricing conditions are becoming more challenging and volatility is increasing, Lloyd’s remains confident in its ambitions, especially those focused on sectors and classes where rate adequacy is strongest.
Financial edge
During a Q&A session with the media this morning, Tiernan added that the new strategy would be led by a careful approach to the burden Lloyd’s places on its constituent syndicates and managing agents.
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He explained: “The reason that we’ve placed sharpening our financial edge right at the top of the strategy is that, every time we have a decision to make, and after we’ve dealt with core regulatory risks, we’ll ask ’is this sharpening our financial edge? Is this improving returns or is this accidentally or carelessly pushing more burden onto managing agents?’
“We’re going to be really disciplined in how we operate as a corporation.”
A significant part of this strategy will depend on highlighting the “unique capital advantage” that Lloyd’s possesses.
Tiernan explained: ”We can, at Lloyd’s, with a double-A rating, shoulder more insurance risk than any other financial institution in the world.
“If we look forward to innovation and the future and look at where money is being spent in the real economy – defence, energy, infrastructure – the decision on whether to move forward with projects is often based on a return.
”If you can balance returns back in favour of taking action, rather than not because of the cost of capital, you bring forward that insurance is actually pretty material to innovation going forward.
”We’re talking about total innovation, actually bringing risk to the fore so that it can be the difference between taking a risk or not. That returns Lloyd’s to its roots of being a market first.”
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