Lloyd’s half year results show profit fall despite GWP growth

Lloyd’s of London’s profit before tax fell in the first half of 2025, despite seeing growth in its gross written premium (GWP).

According to the market’s H1 2025 financial results, released today (4 September 2025), profit before tax dropped from £4.9bn to £4.2bn year-on-year.

Combined operating ratio (COR) also rose from 83.7% in H1 2024 to 92.5% in the first half of this year, while underwriting result dropped from £3.1bn to £1.5bn.

However, GWP grew 6.2% – climbing to £32.5bn from £30.6bn in the same period last year.

Patrick Tiernan, chief executive at Lloyd’s, said: “Lloyd’s syndicates delivered a solid half year performance, demonstrating strength and resilience.

“While major claims returned to expected levels – driven by the devastating California wildfires – disciplined underwriting ensured the underlying result had the capacity to absorb such volatility.”

Despite the fall in profit, investment return for the period climbed by £1.1bn to £3.2bn, an increase of 52.4%.

Tiernan added: “Investment performance was strong and the market’s capital position and solvency ratios provide a very good foundation for future growth.

“Looking ahead, despite a more challenging pricing environment and heightened uncertainty, the market continues to innovate and expand the global reach of the Lloyd’s platform through existing participants, new entrants and a strong pipeline of businesses looking to join the market.

“Our focus remains on facilitating sustainable and attractive returns on capital through the economic cycle for all market participants.”

Market resilience

Meanwhile, Lloyd’s market-wide solvency coverage ratio remained largely steady, rising just 1% to 206%, while its central solvency coverage ratio rose from 435% to 468% between periods.

Total capital, reserves and subordinated loan notes dropped 7% to £43.8bn.

Garin McFarlane, partner at audit and accountancy firm PKF Littlejohn, said: “The results indicate a good half year for the Lloyd’s market, against a backdrop of higher industry-wide catastrophe activity during the first half of 2025 and rate pressure on certain classes of business.

“The market has shown good resilience in the first half of the year, which will undoubtedly be tested again for the second half of the year.

“There is a lot of opportunity for top-line growth from certain classes, such as cyber and trade credit, but underwriting discipline will be paramount to ensure these classes remain profitable in a period of elevated uncertainty.”