Lloyd’s full year 2024 financial result reflects another positive year as the marketplace continues to focus on consistent profitability.
The year 2024 saw the continuation of positive returns, with profit before tax of GBP9.6bn ($12.45bn) against GBP10.7bn in the preceding year, consisting of an underwriting result of GBP5.3bn (2023: GBP5.9bn) and an investment return of GBP4.9bn (2023: GBP5.3bn).
Lloyd’s reported a 6.5% increase in premiums written in the market, raising the gross written premium to GBP55.5bn (2023: GBP52.1bn), 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 Nat CAT 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 GBP4.9bn (2023: GBP5.3bn) 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 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 rating Lloyd’s has ever achieved.
Lloyd’s CEO John Neal 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.” M