Property and reinsurance lines remain the primary drivers of premium growth and profitability for Lloyd’s of London syndicates, according to a new report from Howden Re.
The firm’s latest analysis of Lloyd’s syndicate performance offers a detailed overview of market trends, revealing that property gross written premiums (GWP) among the top 10 syndicates grew at a compound annual growth rate (CAGR) of 18.7% in 2024, while reinsurance lines achieved an even stronger CAGR of 26.5%.
Meanwhile, despite ongoing volatility, casualty lines recorded a second consecutive year with combined ratios below 100% in 2024, indicating improving fundamentals in what has traditionally been a challenging segment.
Howden Re’s report indicated that although syndicates experienced a modest rise in their combined ratio in 2024, increasing by three percentage points primarily due to a four-point rise in the catastrophe loss ratio driven by major events such as the Dali Bridge collapse and Hurricanes Milton and Helene, Lloyd’s still delivered strong profitability, approaching £10 billion for the year.
“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,” Howden Re’s report said.
At the same time, the firm noted that the total market capacity rose to £56 billion, with the top 10 syndicates’ share declining to 37% in 2024, down from 39% in 2023.
Howden Re attributed this shift to accelerating growth among small and mid-sized syndicates, with new startups hitting a five-year high.
This trend reportedly reflects a broader market pivot away from scale and toward agility, innovation, and specialised expertise.
“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,” Howden Re added.
The firm’s report continued, “Lloyd’s of London continued to increase gross premiums in FY2024. This was driven predominantly by volume growth, shifting from pricing growth in prior years.
“This expansion is supported by increased underwriting capacity, particularly among small and mid-sized syndicates. A continued focus on disciplined pricing and investment performance is expected to support future profitability.”
Michelle To, Head of Business Intelligence, Howden Re, commented, “Our data shows Lloyd’s of London has demonstrated resilience and adaptability in today’s environment of heightened risk premia. The Society closed 2024 with a second consecutive year of nearly £10 billion in pre-tax profit, in spite of a modest combined ratio uptick.”
David Flandro, Head of Industry Analysis and Strategic Advisory, Howden Re, said, “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.”
Looking ahead, Lloyd’s forecasts total premiums to reach £60 billion in FY2025, up from £57 billion in 2024.
However, with rate increases contributing just 0.3% to premium growth in 2024, down sharply from 7.2% in 2023, the emphasis is said to be shifting from pricing to volume growth and underwriting discipline.
Howden Re concluded that the market’s ability to adapt, through strategic deployment of capacity, sharper risk selection, and continued investment in underwriting talent, will be key to sustaining momentum in the next phase of growth.
In related news, the Council of Lloyd’s recently appointed Patrick Tiernan as Chief Executive Officer of the specialist Lloyd’s insurance and reinsurance marketplace, with the appointment taking effect today.
