Lloyd's Syndicate Market Shifts as Smaller Players Expand, According to Howden Re

Howden Re has published its June 2025 report, Lloyd's of London: Syndicate Analysis, providing an in-depth assessment of syndicate performance, capacity distribution, underwriting strategies, and profitability across the Lloyd's marketplace. The report outlines how syndicates are adapting to changing risk conditions and repositioning for future growth. 

According to the report, Lloyd's closed 2024 with a second consecutive year of nearly £10 billion in pretax profit. This performance came despite a modest increase in the combined ratio, driven by large-scale events such as the collapse of the Francis Scott Key Bridge and hurricanes Milton and Helene. Property lines contributed 44 percent of total underwriting profit, supported by improved attritional loss ratios and strong investment returns. 

Per Howden Re, total market capacity increased to £56 billion in 2024. However, the top 10 syndicates' share of capacity fell to 37 percent, down from 39 percent in 2023. Growth has increasingly shifted to small and mid-sized syndicates, with new startups reaching a 5-year high. This trend signals a broader move away from scale and toward agility, innovation, and niche expertise. 

The report notes a recalibration in underwriting appetite. Several syndicates scaled back their exposure to casualty, cyber, and marine risks due to pricing pressures and global uncertainty. Conversely, property and specialty lines have seen expanded appetite and premium growth. Among the top 10 syndicates, property gross written premium (GWP) grew at an 18.7 percent compound annual growth rate (CAGR), while reinsurance GWP increased by 26.5 percent CAGR. 

Lloyd's total premium volume in 2024 reached £55.5 billion—falling slightly short of its £57 billion outlook. According to the report, growth was largely volume-driven, with pricing contributing only 0.3 percent, down from 7.2 percent in 2023. Lloyd's projects £60 billion in premiums for 2025, highlighting a growing emphasis on underwriting discipline and volume rather than rate increases. 

According to Howden Re, profitability remained concentrated in property and reinsurance lines. Casualty lines, while historically more volatile, recorded a second straight year with combined ratios below 100 percent, indicating gradual improvement. However, areas such as reinsurance casualty and aviation remained pressured due to economic and geopolitical risks. 

The report also benchmarked syndicate-level performance. Most of the top 25 syndicates improved their underwriting results compared to the prior 5-year average. Syndicates including Canopius, Munich Re, and Ariel led in growth and profitability by leaning into property and reinsurance lines while tightening casualty exposure. 

Michelle To, head of business intelligence, Howden Re, commented, "Our data show Lloyd's of London have 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 pretax profit, in spite of a modest combined ratio uptick." 

David Flandro, head of industry analysis and strategic advisory, Howden Re, added, "This is particularly remarkable in an environment of waning pricing tailwinds, which contributed just 0.3 percent to premium growth in 2024 versus 7.2 percent 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." 

Per the report, Lloyd's will need to maintain its focus on precise underwriting, capital discipline, and talent investment to sustain growth and profitability in a more stable pricing environment.