Lloyd’s, the world’s leading marketplace for insurance and reinsurance, provided a trading update1 for its 2024 Full Year (FY24) financial performance. The full results will be released on 20 March 2025, accompanied by guidance on expectations for Lloyd’s Full Year 2025 results.
FY24 key figures (unassured):
- Gross Written Premium increased by 6.5% to £55.5bn (FY 2023: £52.1bn) reflecting 8.5% growth, primarily in the property and reinsurance segments which had a strong underwriting performance in the year, 0.3% price change and FX movements of (2.3)%.
- The market’s combined ratio is 86.9%, an increase of 2.9 percentage points from the prior year (FY 2023: 84.0%), driven by major claims in the second half of the year. Excluding large losses, the underlying combined ratio is 79.1% (FY 2023: 80.5%).
- The attritional loss ratio improved to 47.1% reflecting continued underwriting discipline (FY 2023: 48.3%), while the expense ratio remained flat at 34.4%(FY 2023: 34.4%).
- The investment return is £4.9bn (FY 2023: £5.3bn), with the portfolio benefitting from another year of high interest rates, notwithstanding some market volatility in the fourth quarter.
- Underwriting profit is £5.3bn (FY 2023: £5.9bn) and profit before tax is £9.6bn (2023: £10.7bn).
Whilst not included in the FY24 result, based on the information currently available, we estimate the net loss to the market for the Californian wildfires to be approximately $2.3bn.
