Context
Lloyd’s has published its 2025 Annual Report and Results, including a summary presentation, statements from the Chair and the CEO, and its new Strategy. The announcement states that the Lloyd’s market has delivered a strong full year performance, a very strong balance sheet, and increased capital.
Key points to note and next actions
- The Lloyd’s market produced strong results in 2025 with profits of £10.6bn (+10.1%), gross written premium of £57.9bn (+4.2%) and a combined ratio of 87.6% (+0.7pp).
- Underwriting and investment returns have resulted in further strengthening of the balance sheet with total capital reaching £49.8bn (+5.7%) and the central solvency ratio increasing to 496%.
- Lloyd’s has launched a new five-year ‘advance and protect’ strategy to sharpen the market’s financial edge and maximise its unique capital advantage.
- The Chief Executive’s (Patrick Tiernan) statement says that Lloyd’s remains committed to supporting the re-platforming of the market to a resilient, cloud-based operational infrastructure, increasing operational resilience and reducing costs. In that context, he says that Blueprint Two was a courageous undertaking but, despite the efforts of many skilled and committed people, the project has not yielded the benefits that were originally envisioned. A decision has been taken, therefore, to retire some of the project’s original vision. The technology being deployed by market participants has advanced markedly since Blueprint Two was first conceived, so Lloyd’s and its partners will move forward with a revised plan.
- Addressing culture, Tiernan states that it is not listed as a strategic driver, but that this is deliberate. Culture is not a separate initiative or workstream. It is the context in which every strategic choice is made at Lloyd’s. The culture Lloyd’s will build will “…be visible in the decisions we take and the standards we uphold. We will celebrate the behaviours that strengthen Lloyd’s — taking the risk, making it happen and owning the outcome. And we will challenge those that fall short.”
- Tiernan states that, over time, these shared beliefs will become self-reinforcing. That discipline is beginning to take hold, and Lloyd’s will work together to embed it more firmly. It will influence how leadership and performance are assessed and rewarded. As the body that oversees the culture of the Lloyd’s market, Tiernan states that Lloyd’s must hold itself to the highest possible standard. “Credibility starts at home.”