Howden Re has released its latest analysis of Lloyd’s of London syndicates, offering insights into performance, capacity trends, underwriting appetite, and profitability across the market. The report highlights how syndicates are adapting to an evolving risk landscape.
Lloyd’s of London concluded 2024 with nearly £10 billion in profit for the second consecutive year, despite a slight increase in the combined ratio. This was largely due to growth in property lines. Michelle To from Howden Re noted that "Lloyd’s of London have demonstrated resilience and adaptability" amidst increased risk premia.
David Flandro from Howden Re remarked on the shift in growth focus towards disciplined exposure management. He stated that "Lloyd’s ability to adapt – through strategic capacity deployment, refined risk selection and investment in underwriting talent – will be critical."
The report indicates sustained profitability amid volatility. Despite major losses like the Dali Bridge collapse and hurricanes Milton and Helene causing a rise in the combined ratio, Lloyd's maintained strong profits thanks to improved loss ratios and investment returns.
Market capacity rose to £56 billion, though the top 10 syndicates' share fell to 37%. Growth is now more concentrated among small and medium-sized syndicates. The market is recalibrating its risk appetite; several syndicates are reducing exposure to casualty, cyber, and marine lines while increasing their focus on property and specialty classes.
Property and reinsurance lines lead both premium growth and profitability. Property gross written premiums (GWP) grew at an 18.7% compound annual growth rate (CAGR) among top syndicates, while reinsurance saw a 26.5% CAGR.
Despite challenges, casualty lines achieved sub-100% combined ratios for two years running. Looking forward, Lloyd’s projects a premium outlook of £60 billion for FY2025 but notes moderating pricing growth compared to previous years.
For further details or expert discussions on this report, contact David Flandro or Michelle To at Howden Re.