Lloyd’s of London reports £9.6 billion profits

Lloyd's of London reported strong profits of £9.6 billion for the past year, despite facing significant losses from disasters. These losses included hurricanes Milton and Helene, along with the Baltimore Bridge disaster. The total premiums written by Lloyd's rose to £55.5 billion, marking an increase of 6.5% from the previous year. Although pre-tax profits dropped by 10% from £10.7 billion, it remains one of the best years in the market's 336-year history. The profits come from an underwriting profit of £5.3 billion and an investment return of £4.9 billion, which benefited from higher interest rates. The market achieved a return on capital of 21%, which, while down from 25.3% in 2023, brought the seven-year average up to 7.6%. The major claims ratio increased significantly to 7.8% in 2024, more than double the 3.5% from the previous year, largely due to the two hurricanes and the collision at the Baltimore Bridge. Notably, the Californian wildfires, which were not included in these results, are projected to cost Lloyd's about £1.8 billion. CEO John Neal emphasized the strong financial performance and the commitment to sustainable, profitable growth. He highlighted the importance of underwriting discipline and global scale in maintaining their success. Chairman Bruce Carnegie-Brown also noted that Lloyd's performance is crucial for bolstering the UK's position in the global insurance market.