Lloyd's confirms 2024 year results

At its 2024 results meeting, Lloyds confirmed its preliminary trading results which were reported on 10^th March . John Neal, CEO of Lloyd’s, provided a very positive overview of the results with the key drivers being premium growth of 6.5% to £55.5bn, new entrants to the market including Aviva and Fidelis, continuing into 2025 with Convex and Oak Re, and price increases. The combined ratio of 86.9%, and underlying combined ratio of 79.1% (combined ratio excluding large losses) which has now been sub 80% for three successive years, demonstrates the continued focus on underwriting discipline. The attritional loss ratio (the cost of everyday claims such as fires, thefts, cyber attacks, ship collisions, aviation losses) was reported at 47.1%, down from 48.3% in 2023 and which is now consistently less than 50%, continuing the year on year improvement in this ratio since 2017. He also reported an investment return of £4.9bn, which taken together with the overall result confirms the confidence in capital management and the continuing trend in profitable growth. This has also been reflected by a strong balance sheet and their financial strength ratings which are all at their highest levels ever recorded for Lloyds (AM. Best A+, S&P AA-, Fitch AA-,and KBRA AA-).

Despite three notable US storm and the Baltimore Bridge collision, along with the continued geopolitical tensions across the globe, Lloyd’s is providing sustainable growth opportunities and record profits.

Alex Cliff, Deputy Chief Financial Officer and who will take over from Burkhard Keese said that the “results give confidence but not complacency”. Patrick Tiernan, Lloyd’s Chief of Markets, looked ahead to 2025 where he said that gross written premium would be in the range of £60bn with an underlying combined ratio target of between 90-95%. The key strategies for 2025 and 2026 will be rate adequacy, distribution efficiency and capital management, maintaining “an iron grip on underwriting discipline”.

The key metrics provided were

• Gross written premium of £55.5bn (2023: £52.1bn)
• Underwriting result of £5.3bn (2023: £5.9bn)
• Combined ratio of 86.9% (2023: 84.0%)
• Underlying combined ratio of 79.1% (2023: 80.5%)
• Profit before tax of £9.6bn (2023: £10.7bn)
• Attritional loss ratio of 47.1% (2023: 48.3%)
• Investment return of £4.9bn (2023: £5.3bn)
• Total capital, reserves and subordinated loan notes of £47.1bn (2023: £45.3bn)
• Central solvency ratio of 435% (2023: 503%)

The results follow on the back of the recent Quarter 1 Market Message delivered by Patrick Tiernan, Rachel Turk and Emma Stewart and which can be found here: Q1 Market Message 2025 - Lloyd's, with the accompanying slides found here: PowerPoint Presentation

The full press release can be found here : Lloyd’s reports sustainable, profitable performance in 2024 and the analysts slide pack can be found here : www.lloyds.com/about-lloyds/investor-relations/financial-performance/financial-results/full-year-results-2024