Lloyd’s of London: Syndicate Evolution Signals a Market in Strategic Transition
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Howden Re is pleased to announce the publication of its latest Lloyd’s of London syndicate analysis. The report provides a comprehensive view of syndicate performance, capacity trends, underwriting appetite, and line-of-business profitability across the Lloyd’s market. It offers a detailed snapshot of how syndicates are navigating an evolving risk landscape and positioning for future growth.
Lloyd’s of London has once again demonstrated its resilience and adaptability amid heightened catastrophe and man-made loss activity, closing 2024 with a second consecutive year of near-£10bn profit, despite a modest uptick in the combined ratio. Total GWP increased, driven primarily by volume expansion in property lines.
Michelle To, Head of Business Intelligence, Howden Re, commented: “Our data show Lloyd’s of London have demonstrated resilience and adaptability in today’s environment of heightened risk premia. The Society closed 2024 with a second consecutive year of nearly £10bn in pre-tax profit, in spite of a modest combined ratio uptick.”
David Flandro, Head of Industry Analysis and Strategic Advisory, Howden Re, added, “This is particularly remarkable in an environment of waning pricing tailwinds, which contributed just 0.3% to premium growth in 2024 versus 7.2% in 2023. The growth focus is clearly shifting to disciplined exposure management. Lloyd’s ability to adapt – through strategic capacity deployment, refined risk selection and investment in underwriting talent – will be critical in navigating the next phase.”
Key Report Highlights:
Profitability Sustained Amid Volatility
While 2024 saw a slight increase in the combined ratio, driven by major losses including the Dali Bridge collapse and hurricanes Milton and Helene, Lloyd’s maintained strong profitability. This was underpinned by improved attritional loss ratios and robust investment returns. Notably, property lines continued to deliver outsized contributions to underwriting profit, accounting for 44% of the total.
A Redistribution of Capacity
While total market capacity rose to £56bn, the share held by the top 10 syndicates declined to 37%, down from 39% in 2023. Growth is increasingly concentrated in small and medium-sized syndicates, with startups reaching a five-year high. This reflects a broader momentum shift away from scale and toward agility, innovation, and niche expertise.
Underwriting Appetite: A Strategic Rebalancing
The market is undergoing a recalibration of risk appetite. Several syndicates have scaled back exposure to casualty, cyber, and marine lines due to pricing pressures and geopolitical uncertainty. Conversely, appetite for property and specialty classes has increased, with some syndicates expanding their footprint in these areas.
Line of Business Performance: Property and Reinsurance Lead
Property and reinsurance lines continue to dominate both premium growth and profitability. Property GWP grew at an 18.7% CAGR among the top 10 syndicates. Meanwhile, reinsurance saw a 26.5% CAGR.
Despite volatility, casualty lines posted a second consecutive year of sub-100% combined ratios, suggesting improving fundamentals in a historically challenging segment.
Market Outlook: Growth Through Precision
Looking ahead, Lloyd’s projects a premium outlook of £60bn for FY2025, up from £57bn in 2024. However, with pricing growth moderating, contributing just 0.3% to premium growth in 2024 versus 7.2% in 2023, the focus is shifting to volume and underwriting discipline.
The market’s ability to adapt – through strategic capacity deployment, refined risk selection, and investment in underwriting talent – will be critical in navigating the next phase of growth.
Read the full analysis here for more information.
If you would like to get in touch with one of our experts to discuss this report in further detail, please get in touch with one of our experts
David Flandro - Managing Director, Head of Industry Analysis and Strategic Advisory, Howden Re
Michelle To - Managing Director, Head of Business Intelligence, Howden Re