Syndicate Research Limited (SRL) reports that the weighted average result for Lloyd’s of London syndicate transactions as a percentage of net premiums paid (NPE) (excluding syndicate fund (FIS) investment returns) in 2025 was above average at 18.8%.
The 2025 figure is an improvement from 2024’s 18% and also compares favorably with the five- and nine-year averages (14.5% and 7.9%, respectively).
SRL noted that the syndicate’s average combined ratio was 85.7%, well below the nine-year average of 96.2%. Results in 2025 benefited from relatively limited hurricane activity in the United States, which was particularly positive for the excess loss group.
Lloyds Group’s 2025 syndicate results also benefited from strong investment performance. Excluding FIS, return on investment averaged 7.7% for NPE, compared with the nine-year average return of 3.5%.
Despite strong overall performance, SRL highlighted continued dispersion at the syndicate level, with best- and worst-case performance in 2025 ranging from +81% to -18%.
Investment return volatility also remains elevated, with a standard deviation of 4.6%, reflecting differences in portfolio composition and reserve liability levels.
SRL added: “Investment returns are likely to become more important in 2026 against a backdrop of lower (re)insurance prices and reduced adequacy of market-level interest rates.”
The company continued, “In 2025, the top-performing syndicate is 1176, which has been generating huge profits in the absence of a nuclear disaster. The remaining top 5 syndicates are all part of SRL’s excess-loss peer group and have benefited from the absence of any major hurricane losses in the United States.
“The peer group’s weighted average profit by 2025 is 49%, well above the 18.8% average, but the return on capital outcome will be significantly lower as its higher risk portfolio results in higher capital requirements.
“The five worst-performing companies, all but one of which are loss-making, are relatively new, with three starting trading in 2024, one starting in 2023 and one starting in the third quarter of 2020.”
