Lloyd’s publishes 5 year strategy. Aims to reduce operating costs and generate at least 12% capital returns

Some firms have been put off from doing business at Lloyd’s due to the perceived higher associated costs and complex rules and requirements. This may be set to change.

In March 2026 Lloyd’s announced its 5 year strategy which includes (amongst other things) a clear intention to “sharpen its financial edge”. What exactly this means in practice remains to be seen, however one of its stated ambitions is to achieve a “1% incremental cost to operate at Lloyd’s”. This would certainly make Lloyd’s a more attractive option as, at this level, the wider benefits of doing business at Lloyd’s (such as accessing the Lloyd’s network of global (re)insurance licenses and AA financial strength market rating) are harder to ignore. 

The 5 year strategy document also includes the aim to achieve a market through-the cycle* combined operating ratio of below 95% and return on capital of above 12%. This comes against the backdrop of strong 2025 full year results which were published for the Lloyd’s market recently (headlines include profit before tax of £10.6bn and a combined ratio of 87.6%). Returns at such levels are attractive. There are a variety of ways to invest at Lloyd’s, including London Bridge and other third-party capital structures. 

In other news, Lloyd’s also recently completed an extensive review and consolidation of its requirements and byelaws, creating a guidebook making it easier for firms and individuals to understand, navigate (and ultimately comply) with the rules governing the Lloyd’s market. It comes with a caveat that it may not yet be complete and is subject to further update, however it is a much welcomed step in the right direction and undoubtedly makes Lloyd’s more accessible.

All of this is to say that 2026 promises to build on the success of 2025 and to be an exciting year for Lloyd’s, with a number of changes made recently and on the horizon which could make it worth a look, or indeed a second look for those of our clients which had previously discounted Lloyd’s based on cost or complexity. If you are interested in discussing what opportunities Lloyd’s could offer your business, or how you could put your capital to work at Lloyd’s, we would love to hear from you.

*10 year average