Specialist insurance and reinsurance marketplace Lloyd’s has recorded a 6.9% rise in gross written premium (GWP) to £34.7 billion for the first half of 2026, up from £32.5 billion in H1’25, driven by strong volume growth of 15.8% from new and existing syndicates, despite a more competitive pricing environment.
For the six month period, the Lloyd’s market delivered an underwriting result of £1.9 billion, with a combined ratio of 90.8%, benefiting from comparatively lower major claims, compared to £1.5 billion and 92.5% in H1’25.
However, the underlying combined ratio increased slightly to 84%, compared to 82.1% in H1’25, as risk-adjusted rates reduced.
For H1’26, due to a comparatively lower level of catastrophe losses, the major claims ratio improved to 6.8% from 10.4% in H1’25.
Meanwhile, prior-year reserve releases contributed 3.5 percentage points, up from 2 percentage points in H1’25, benefiting the combined ratio, reflecting favourable movement across multiple classes, partly offset by reserve strengthening on the Baltimore Bridge loss and updated Ukraine estimates, explained Lloyd’s.
Additionally, the expense ratio rose slightly to 36.4% compared to 35.8% last year, due to higher acquisition costs and increased profitability-driven commissions.
For the first half of 2026, Lloyd’s generated profit before tax of £3.5 billion, a decrease on the prior year period’s £4.2 billion.
On the asset side of the balance sheet, Lloyd’s saw decreased investment returns of £1.8 billion or 1.6%, affected by unrealised fixed income losses following a widening of yields in the period. This compares to £3.2 billion or 3.1% in H1’25.
Lloyd’s explained, “The result comprised strong income and realised gains, whereas unrealised losses detracted from performance. Yields widened during the period as geopolitical tensions and inflationary pressures resulted in downward pressure on fixed income assets. Equity markets, by contrast, performed strongly and provided a partial offset. The market’s portfolio remains focused on high-quality asset allocation, capital preservation and liquidity.”
As of 30 June 2026, Lloyd’s capital position remained strong, with total capital, reserves and subordinated loan notes of £48.4 billion, compared to £49.8 billion in FY’25. Underlying capital generation in H1’26 was offset by the return of capital to members, reflecting the strong performance of the closing underwriting year of account, noted Lloyd’s.
The Lloyd’s central solvency ratio increased to 503%in H1’26 compared to 496% at FY’25, while the market-wide solvency ratio remained broadly stable at 199% compared to 200% at FY’25.
Patrick Tiernan, Chief Executive Officer, Lloyd’s, commented, “The syndicates operating in the Lloyd’s market delivered a solid aggregate set of results for the six months ended 30 June 2026. But performance and high risk are far from mutually exclusive. Underwriting discipline and innovation are the keys to maintaining outperformance and quality of earnings.”
Alongside its results, Lloyd’s has reaffirmed that the market remains on track to deliver against the full-year guidance set out in March. The strategy is focused on deploying Lloyd’s four distinctive strengths to sharpen its financial edge.
The post Lloyd’s reports solid H1’26 results as GWP rise 7% amid softening rates appeared first on ReinsuranceNe.ws.