The Lloyds of London insurance and reinsurance market is anticipated to have experienced another impressive year in 2025, with Insurance Capital Markets Research (ICMR) forecasting a 22.3% net total return for the marketplace.Using its (Re)Insurance Specialty Index (RISX), an equity benchmark for the global specialty re/insurance sector based on publicly listed companies with underwriting subsidiaries in Lloyd’s, the analysts forecast suggest that investing into Lloyd’s business at this time is notably attractive.The RISX equity index serves as a benchmark for investing in Lloyd’s, as well as an indicator of its pro-forma annual accounting performance, providing a head start on the likely Lloyd’s numbers yet to be released.“The RISX net total return index, a liquid benchmark for the Lloyd’s of London insurance market, ended 2025 at 9,405 points, capping a resilient year for specialty (re)insurers despite a backdrop of geopolitical volatility, growing trade barriers ICMR explained.

Analysts noted that investors faced challenging tests in early 2025, with the devastating wildfires that struck the Los Angeles area in January, which was followed up by significant volatility in April with the introduction of new US trade tariffs.According to ICMR, this led to the sharpest drawdown over the year.However, this “tariff shock” passed notably swiftly, with the index reclaiming all its losses within four weeks, analysts went on to explain.

“A relatively benign Atlantic hurricane season provided a tailwind for underwriting margins, allowing the index to climb a further 5 % in December.Throughout the year, the index maintained a consistent dividend yield of 2.13%, suggesting that the index price increases are being backed up by earnings growth, and are not as susceptible to bubbles as, for example, technology stocks,” ICMR added.Moreover, the 22.3% net total return delivered by RISX was especially notable when compared to broader equity markets, with it outperforming both the MSCI World index, which gained 21.3% (NTR USD), and the S&P 500 index of 17.7% (NTR USD).

As the re/insurance industry begins its 2026, a variety of broker reports from the January renewals indicate a softening within the market, particularly in loss free catastrophe business.Analysts highlighted how this coincides with a 9% growth in dedicated reinsurance capital, as well as catastrophe losses sitting 18% below recent averages.“Coupling this with falling interest rates may result in tighter margins, however the underlying demand for specialty coverage remains very robust,” ICMR added.

  The chart above provided by ICMR highlights this similarity on returns.The chart also suggests that the likely full year 2025 Lloyd’s market reported return on capital will again be c.20% (20.7% at half-year 2025), comfortably exceeding its cost of capital.The analysts also emphasised that 2025 was marked by a realignment of the index’s 27 company constituent base.

Legacy specialist Enstar was delisted following its acquisition by Sixth Street, with its place effectively filled by Aviva, following the UK insurer’s acquisition of Probitas.Subsequently, this was followed by Sompo Holdings’ move to acquire the recently re-listed Aspen Insurance, which was quickly followed by Skyward Specialty’s acquisition of Apollo Group and Radian Group’s acquisition of Inigo.As we reported last week, ..

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