![\"Lloyd's-logo-other\"](\"http:\/\/www.vsdia.com\/wp-content\/uploads\/2025\/05\/Lloyds-logo-other.jpg\"){kind=logo}
At the heart of this quarter\u2019s address was Patrick Tiernan, speaking for the final time as Lloyd\u2019s Chief of Markets before stepping into his new role<\/a> as CEO.<\/p>\nHis closing message anchored a session that underscored the fragility of the current market, the pressure on underwriting margins, and the elevated expectations for syndicates operating under Lloyd\u2019s banner.<\/p>\n
The Lloyd\u2019s marketplace finds itself at a critical juncture. While the 2025 business plan had projected \u00a366bn in gross written premium, the Q1 actuals told a less optimistic story. Risk-adjusted rate change (RARC) came in at -3.3%\u2014not disastrous, but “below plan.”<\/p>\n
Rachel Turk, Chief Underwriting Officer, was candid about the shift: “There is optimism in the 2025 plan… so I was surprised not to see more realism at Q1.” If current trends continue, Lloyd\u2019s anticipates the 2025 year of account GWP landing “in at the low \u00a360 billion” range.<\/p>\n
The message to managing agents was unambiguous: “We will not support plans that are retaining top line growth aspirations and not reflecting the true impact of the rating environment on the bottom line.”<\/p>\n Turk and Tiernan communicated a sharpening of expectations. A more surgical and data-driven oversight is in effect: “While there is a risk that people believe we are all bark and no bite, the actions we are and have been taking are private and targeted.”<\/p>\n Throughout the message, Turk laid out a series of expectations for the market. These include using RARC as a floor, not a target, and clearly engaging with Lloyd\u2019s when deviation occurs. “Trading below this level isn’t necessarily a problem, but…you must talk to us when you are not or ideally when you think you may not hit planned rack.” She added, “Underperforming syndicates should expect to be shrinking.”<\/p>\n Delegated business came under close scrutiny: “Doing it well is a prerequisite for those who choose to embrace delegation, and not everyone with the desire will have the capabilities.” She warned: “Trying to write these facilities from the side of desk will not be tolerated.”<\/p>\n On claims, the faster claims payment initiative is moving into broader adoption. Turk reported: “1.7 billion pounds is currently tied up, which is made up of 600 million pounds, one off release of redundant funds that are overdue and can be claimed now 800 to 900 million pounds release through a reduction in the average holding time of funds to two to four weeks from 12 to 14, and the net result is an annual run rate of between 200 to 300 million pounds that feels worth signing up to.”<\/p>\n Alex Cliff, in her first market address as Chief Financial Officer, emphasised capital resilience: “Our reserve margin stands at \u00a35.4 billion, a combined capital base of \u00a347 billion… this is a foundation we must protect.”<\/p>\n With increased market volatility, she reinforced the need for stronger connections between capital and underwriting: “Your reserving should align with your reserving policy appetite and explicitly capture the uncertainties we face.”<\/p>\n Tiernan\u2019s final message was direct: “If we don\u2019t maintain discipline and sustain profitability, the rest won\u2019t matter. It\u2019s as simple as that.” While the trailing data may not be alarming, he warned of trends that don\u2019t add up: “There are increasing examples of egregious trading behaviours that belie reconciliation with logic… they don\u2019t make sense in today\u2019s underwriting room.”<\/p>\n He closed with a challenge to the market: “We are all saying the right things… but are we doing the right things all the time?” And a final reminder of what is at stake: “We must demonstrate discipline now if we want to retain a sustainable market.”<\/p>\n The post Lloyd\u2019s Q2’25 Market Message: risk awareness, not risk aversion, marks a defining juncture<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" As the Lloyd\u2019s marketplace charts its course through a more uncertain environment, Q2 2025\u2019s Market Message came with a clear directive: “We aren\u2019t risk off, but we are risk aware.” At the heart of this quarter\u2019s address was Patrick Tiernan, speaking for the final time as Lloyd\u2019s Chief of Markets before stepping into his new…<\/p>\n","protected":false},"author":1,"featured_media":817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[9],"tags":[],"_links":{"self":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/815"}],"collection":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/comments?post=815"}],"version-history":[{"count":3,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/815\/revisions"}],"predecessor-version":[{"id":819,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/posts\/815\/revisions\/819"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media\/817"}],"wp:attachment":[{"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/media?parent=815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/categories?post=815"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.vsdia.com\/index.php\/wp-json\/wp\/v2\/tags?post=815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"http:\/\/www.vsdia.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
<\/a><\/p>\n<\/div>\n<\/div>\n