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Lloyd’s market posts strong 2025 return on capital, AM Best says
AM Best estimates the Lloyd’s market delivered a profit before tax of GBP 10.6 billion in 2025 and a 22% return on capital for the third straight year.
The Lloyd’s market generated an excellent return on capital above 20% for a third consecutive year in 2025, according to analysis by AM Best.
AM Best said 2025 profit before tax totaled GBP 10.6 billion, with a 22% return on capital, after a period when earnings were weighed down by low interest rates, soft underwriting conditions, and catastrophic losses.
The report notes that while Lloyd’s has produced an underwriting profit in each of the last five years, earnings volatility remains an ongoing risk due to exposure to large losses and the cyclicality of underwriting pricing.
AM Best also highlighted that depressed investment returns during the prolonged low interest rate environment after 2008, along with a sharp spike in rates that triggered unrealised losses in 2022, materially impacted the market’s overall earnings.