Syndicate Research Limited (SRL) has reported that the weighted average result as a percentage of Net Premium Earned (NPE), excluding Funds in Syndicate (FIS) investment returns, for Lloyd’s of London syndicates trading in 2025 was an above-average 18.8%.
The 2025 figure represents an improvement on 2024’s 18%, and compares favourably with the five- and nine-year averages of 14.5% and 7.9% respectively.
SRL noted that syndicates’ combined ratios averaged 85.7%, significantly below the nine-year average of 96.2%. Performance in 2025 benefited from relatively limited US hurricane activity, which particularly supported Excess of Loss syndicates.
Lloyd’s syndicate results in 2025 also benefited from strong investment performance. Excluding FIS, investment returns averaged 7.7% of NPE, compared with a nine-year average of 3.5%.
Despite the strong aggregate performance, SRL highlighted persistent dispersion at the syndicate level, with the best and worst 2025 results ranging from +81% to -18%.
Investment return volatility also remained elevated, with a standard deviation of 4.6%, reflecting differences in investment portfolio composition and levels of reserve gearing.
“Investment returns are likely to assume a greater significance in 2026 against a backdrop of (re)insurance price decreases and declining rate adequacy at a market level,” SRL added.
The firm continued, “In 2025, the top performing syndicate was 1176, which, in the absence of a nuclear disaster, has consistently produced large profits. The rest of the top 5 are within SRL’s Excess of Loss peer group and benefited from the absence of any major US hurricane losses.
“The weighted average profit in 2025 for this peer group is 49%, far higher than the average of 18.8%, but results on a return on capital basis will be appreciably lower with their higher risk portfolios leading to higher capital requirements.
“The bottom five performers, all loss-making bar one, are relatively recent starters with three trading from 2024, one from 2023 and one from Q3 2020.”
