Fully detailed in the report, Lloyd’s new strategy aims to strengthen its financial edge and advance its ambition to be the preeminent global marketplace for insurance risk.

The strategy has been articulated following the decision to sunset certain elements of Blueprint Two’s original vision, which, according to Tiernan, did not deliver the benefits initially anticipated.

“Existing not to avoid risk, but to enable those who take it on – no matter how complex, global or new. We seek to attract the very best – be they underwriters, brokers, capital providers or customers; those who will lead solutions, pricing, terms and conditions, but also those who embrace our standard of excellence,” Lloyd’s explained in its annual report.

Tiernan added that while at the helm, his firm will foster a faster, simpler operating environment, informed by principles-based oversight, clearer reporting and more predictable decision making.

Outlining the four drivers of the new strategy, the CEO said, “First, leading underwriting performance. Sustainable profitability through-the-cycle remains the primary measure of success. We will promote expertise and underwriting discipline, while remaining bold in embracing nascent risks.

“Second, building a more efficient marketplace. We will reduce friction, lower costs and create predictable, risk-based oversight so that capital and talent can move at pace.

“Third, maximising our capital advantage. Our unique structure allows more risk to be taken per unit of capital than elsewhere. We will protect and deploy that advantage to increase returns for the same level of risk.

“Fourth, creating a Lloyd’s to be proud of. Focus, innovation and talent are not soft ambitions. They are competitive necessities. We will invest where we can increase return or relevance, and we will stop doing what does not.”

Tiernan explained that the strategy’s implementation will be phased and deliberate, with Lloyd’s prioritising initiatives that offer clear economic benefits and executing changes within defined time horizons.

He continued, “The future of the Lloyd’s market infrastructure is not one platform, mandated across hundreds of market participants – each with different strategies, priorities, systems and vendors. It is an ecosystem of intelligent solutions, built on common data standards and interoperability.

“We remain committed to supporting the re-platforming of the market to a resilient, cloud-based operational infrastructure, increasing operational resilience and reducing costs. This must be done on a phased basis with minimum disruption to the market.”

Tiernan observed that while Blueprint Two was a courageous undertaking, and the firm learned a great deal, the project has not yielded the benefits that were originally envisioned.

Tiernan went on, “We have, therefore, taken the decision to sunset some of the project’s original vision. The technology being deployed by market participants has advanced markedly since Blueprint Two was first conceived.

“Lloyd’s has a critical role to play in setting standards and organising data. Where we have data that is useful, we will share it with the market.

“We have a clear understanding of our role as a minority shareholder in Velonetic. We will work closely with Velonetic – alongside our counterparts at DXC and the IUA – as it moves forward with its revised plan.”

In response to the announcement that elements of Blueprint Two are being sunsetted, industry leaders have weighed in on what the shift means for the London insurance market.

Executives across market bodies and technology providers have highlighted both the lessons learned from the initiative and the opportunities for more practical, incremental approaches to modernising infrastructure and improving operational efficiency.

Chris Jones, Chief Executive of the IUA, commented on the news, “The original Blueprint Two programme was an extensive set of work that sought to fully digitise the London insurance market.

“That this has not yet been comprehensively achieved reflects the ambitious nature of the initiative. There have been some notable successes, however, including the establishment of core data standards, and these can be utilised going forward.

“The IUA will continue to work with its partners to improve market processes in the light of new technological advances, whilst ensuring that existing infrastructures are robust and supported.

“This will always be a collaborative effort, involving technology providers, carriers, brokers and Velonetic, which continues to provide critical services to our market.

“As a Velonetic shareholder, we are directly involved in developing effective governance for a new approach to digitisation that progresses on an incremental basis and minimises implementation risks.”

Ben Rose, Co-Founder and President of Supercede, the reinsurance intelligence company, said, “There won’t be a void if Blueprint Two disappears. The market has already voted with its feet. What participants want now are tools they can actually use today, not another decade-long transformation. The industry has shown it will embrace technology when it improves decision-making without forcing wholesale change.

“The real success story has been the Lloyd’s Lab. By opening the door to multiple technology providers, it has delivered better tools, more choice and faster progress. Market participants can adopt solutions that work for them, rather than waiting years for a single transformation to arrive.

“The lesson from Blueprint Two is that the industry doesn’t need another moonshot. It needs tools that make everyday decisions clearer and faster. Incremental improvement across the market will ultimately move the dial far more than one enormous programme ever could.”

Christopher Croft, LIIBA Chief Executive, added, “Replacing the core systems at the heart of the market was always going to be a difficult task — the IT we rely on today is the product of decades of evolution, not a simple upgrade. Delivering a new, multi-lateral settlement engine and a modern carrier back-office that truly supports a subscription market is technically complex and operationally demanding.

“That said, the work remains essential. The continued delays make it understandable that Lloyd’s and the market bodies should take time to re-examine how best to achieve the outcomes we all need.

“If we are honest about the lessons of the last 25 years, we must ask whether very large, set-piece, cross-market programmes – competing with firms’ everyday priorities for scarce expert resource – are the most effective route. A fresh approach should consider smaller, modular builds, clearer commercial incentives and governance that drives delivery rather than perpetuates delay.

“This is now time to take stock and should be treated as an opportunity for radical thinking. The focus now needs to be on practical, market-led solutions that create genuine commercial pressure to finish the job – because the market cannot afford further drift.

“As George Foreman memorably put it: ‘Call me old, call me fat, but don’t forget to call me for dinner.’ We do not care about the moniker attached to this project – what matters to LIIBA and our members is that the vital work to replace obsolete core systems is delivered for the benefit of the market.”

In related news, it was announced earlier today that the specialist insurance and reinsurance marketplace generated profit after tax of £10.6 billion in 2025, an increase of $1 billion on the prior year, as gross written premiums rose by 4.2% year-on-year to £57.9 billion, reflecting new participation in the market and continued expansion by existing syndicates.

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Syndicate 5886 delivered a net combined ratio of 80.9%, representing a 3.8% year-on-year improvement.

This strong underwriting performance generated a profit of £72 million, marking a 27% increase in total comprehensive income from 2024.

Blenheim Underwriting’s 2025 performance marks a significant milestone for Syndicate 5886, cementing its transition from a start-up (established in 2027) to a consistently profitable player in the Lloyd’s market.

Under the Lloyd’s three-year accounting system, Blenheim has now closed the 2023 year of account (YOA), producing a 21% profit to capital providers.

While the subsequent open years, 2024 and 2025, remain “on risk” – meaning that claims can still develop – they are “looking profitable at this stage of their development”, Blenheim noted.

The 2024 YOA is forecasted to be profitable in the 10% to 20% range, despite 2024 being a year of significant natural disasters, according to data by Argenta Group.

For the 2025 YOA, early data suggests continued profitability as the syndicate leverages its increased stamp capacity, which stands at £525 million, as stated in Blenheim’s ‘Syndicate Annual Report and Accounts 31 December 2024’.

Peter Scales, group chairman and CEO, said: “Our growing syndicate has delivered its third consecutive year of exceptional underwriting returns. The figures are now revealing the work that the whole team has undertaken to build and broaden our account with the addition of high calibre underwriters who wish to collaboratively trade in our independent underwriting driven environment.”

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Headquartered in London, the new brokerage will provide specialist broking and risk advisory services to independent brokers across global markets, in addition to serving direct clients. Its core focus will be Cyber and Technology Errors & Omissions (E&O) risks worldwide.

Brecon Specialty will begin operations with a team of 14 professionals. The firm is led by David Rees, and the group brings together more than a century of combined industry experience. The team contributes deep broking expertise and long-standing relationships across the London insurance market.

Operationally, Brecon Specialty will be supported by the infrastructure of Sodalis Capital and specialist outsourcing provider Pro Insurance Solutions Limited. The firm will utilise Pro’s insurance platform while accessing the market through Lloyd’s of London.

“Brecon was established to offer a focused independent broker in the London market,” commented David Rees, CEO of Brecon. “Our broker partners and clients will benefit from best-in-class service and access to considerable capacity, delivered by a team of cyber specialists that are at the top of their game.”

“We are delighted and immensely proud that David and team are joining the Group,” added Colin Thompson, Group CEO of Sodalis. “With our unique capital base and a best-in-class team, we think we are now uniquely positioned to offer a market-leading proposition in the Cyber and Technology E&O market.”

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The optimistic outlook for the 2025 year of account is complemented by the strategic expansion of Syndicate 6104, with capacity increasing to £79 million in 2025, marking a four-fold increase from the £19 million deployed in 2023.

Hiscox also upgraded its 2024 projections, lifting the estimated range for Syndicate 33 by a full percentage point to 3.4%–15.4%. Similarly, Syndicate 6104 saw its forecast nudge higher, with the upper bound rising from 25% to 25.3%.

The update concluded with the final closing results for the 2023 account, which saw Syndicate 33 finish the year with a strong 19.1% return on capacity.

However, it was Syndicate 6104 that delivered the standout performance, closing at a massive 51.7% profit, eclipsing the top end of its previous guidance.

In related news, Hiscox Re, the reinsurance business and third-party capital platform of the specialist insurer, recently disclosed that it generated profit before tax of $286.7 million in 2025, an increase of 7% on the prior year, as the segment’s undiscounted combined ratio strengthened to 67.4%.

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In a new report, ICMR described the anticipated underwriting outcome as “exceptional”, adding that it is likely to be accompanied by a return on capital above 20% for a third consecutive year.

Together, these metrics point to a period of sustained, high-quality profitability for the world’s leading specialist insurance and reinsurance market.

“While broader equity markets have seen a muted start to the year, the specialty sector is surging,” ICMR’s report added.

The RISX index is said to be up 6.9% YTD (as at 20 Feb 2026), significantly distancing itself from both general and sector-specific insurance benchmarks.

ICMR noted that a key driver of this recent momentum was the announcement of a potential acquisition of Beazley by Zurich.

“This move did more than just boost Beazley’s share price; it acted as a catalyst for the broader sector, lifting peers like Hiscox and reaffirming the scarcity value of high-performing specialty platforms,” ICMR’s report explained.

Zurich was recently granted an extension to the ‘Put up or Shut up’ deadline in relation to its potential acquisition of Beazley.

The deadline has been pushed back to 4 March 2026, giving Zurich until 5pm (London time) on that date to either confirm a firm intention to make an offer or announce that it does not intend to proceed with a bid for the specialist insurer.

ICMR’s report concluded, “Historically, accessing the unique returns of the Lloyd’s market has been a challenge for many investors. Supporting syndicates with capital directly—the traditional route—remains a complex and often illiquid process.

“The RISX index demonstrates a compelling alternative: an equity strategy based on the listed owners of Lloyd’s businesses.

“By providing a proxy for the marketplace as if it were a single listed company, the RISX index offers investors a liquid, transparent way to capture Lloyd’s-like returns through the public markets, bypassing the structural hurdles of direct capital support.”

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Luck joined the Lloyd’s Council in 2018, and as well as Deputy Chair, has been appointed as Senior Independent Director, subject to regulatory approval, following the departure of Lord Mark Sedwill in November 2025.

Lloyd’s has confirmed that Luck will be tasked with providing expertise and support, with the search for a permanent Independent Director now underway.

Currently, she serves as a non-executive director of Convex, of HSBC Bank Bermuda, and Chair of Phoenix Re Bermuda.

McGovern, leader of AXA XL’s insurance business in the UK & Lloyd’s market, joined the Lloyd’s Council in 2023, and has replaced Andrew Brooks as Deputy Chair, effective February 1st, 2026.

His role as Deputy Chair is in addition to his responsibilities as Chair of the Lloyd’s Market Association (LMA).

Sir Charles Roxburgh, Chair of Lloyd’s, said: “I am delighted that Fiona has taken on additional Council responsibilities as our Senior Independent Director and to confirm both Fiona and Sean as our new Deputy Chairs. Their combined experience and deep understanding of the Lloyd’s market will continue to strengthen the Council and guide our strategic priorities in the period ahead.”

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The approval was facilitated through its subsidiary SGIS Malaysia Ltd., but as noted by the firm, this development elevates the entire group into an “elite circle of global brokerages” authorised to negotiate and place risks directly with underwriters at Lloyd’s, the world’s oldest insurance and reinsurance marketplace.

As a Lloyd’s broker, SGIS Group now has a direct pipeline to unparalleled underwriting expertise and specialist insurance capacity, enhancing its ability to manage complex, high-stakes risks across various sectors.

Some of the sectors the group plans to work in are Financial Lines & Specialty Casualty, Cyber & Political Risks, Professional Indemnity, Property & Engineering, and Marine & Specialty Solutions.

Through this entry, the group aims to design more sophisticated, bespoke insurance programmes and source capacity more efficiently by directly engaging with the Lloyd’s market.

Simon Oh, Founder and Chief Executive Officer, SGIS Group, commented, “Becoming a Lloyd’s broker is a major achievement that reflects the strength of our governance and our technical expertise.

“This direct engagement with the Lloyd’s market allows us to deepen our commitment to international markets and deliver significantly enhanced value to our clients and business partners worldwide.”

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The brokerage has been established in collaboration with sister company Greenlight Insurance Services Ltd, both operating under the Trawick Holdings umbrella.

The Lloyd’s brokerage is registered via Greenlight Insurance Services Ltd and will trade as Trawick International. Its introduction provides the group with direct connectivity to the Lloyd’s insurance market, allowing business to be placed on behalf of Trawick Holdings’ insurance brands.

Broker registration enables the group to strengthen its approach to risk placement, capacity sourcing, and programme design across its portfolio, including Greenlight and Trawick International, while ensuring compliance with all relevant regulatory frameworks and Lloyd’s market standards.

Greenlight and Trawick International will continue to operate as separate Lloyd’s coverholders. Greenlight will retain its UK-based coverholder status, while Trawick International will continue to act as a US coverholder.

Both entities will maintain delegated underwriting authority from Lloyd’s syndicates where applicable. The addition of an internal Lloyd’s broker enhances placement options for the group, while preserving appropriate independence between underwriting and brokerage operations.

The brokerage will be overseen by Tim Gowler, Head of Risk Management, EMEAA, at Trawick International, who will report to Claire Hargreaves. Gowler has worked with the group for several years and brings more than three decades of experience within the Lloyd’s market. He was instrumental in the broker registration process and will be responsible for the brokerage’s governance and operational oversight.

Daryl Trawick, Founder and CEO of Trawick Holdings, said: “I started my career as a home service insurance agent in rural Alabama. Today, our companies are spread across the US, Mexico, Canada, Cayman, the United Kingdom, the European Union, Africa and Asia.

“As proud as I am of all that has been accomplished, I never imagined this. To see our group join a list of 350-400 brokers globally with Lloyd’s of London is deeply meaningful to me.”

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Speaking at Fitch Ratings’ Insurance Insights 2026 event on 22nd January in London, Turk emphasised that it is not inevitable that the industry will move into a completely soft market.

Although prices softened at the recent January 2026 reinsurance renewals, she said that a major cyber catastrophe, natural catastrophe, or other significant loss could quickly shift market conditions again.

Turk explained, “We had a very, very light, North Atlantic hurricane season from an insured perspective. In terms of the number of storms, it was the same number that there are normally, but they just didn’t happen to make landfall. Therefore, it was a very light insured North Atlantic hurricane season. Had it been a heavy season, those rates would be going up and we’d be back into a period of hardening market. So, that’s why I say it’s on a knife edge.

“I think the return on capital is partly what’s driving the fact that it is not inevitable that we move into a completely soft market.”

It’s a valid point, as reports from brokers and rating agencies suggests that the reinsurance industry will meet its cost of capital for a third consecutive year in 2025, although the outlook for 2026 is less certain, despite property cat rates still being viewed as adequate as they’ve softened from a high level.

Turk noted that while pricing has begun to soften, the reinsurance market has remained disciplined in its terms and conditions and attachment points.

“At 1.1, we saw softening of pricing, but from a reinsurance perspective, we have not yet seen softening of terms and conditions or attachment points. I get nervous when terms and conditions and attachment points start to come under threat. At the moment, I’m not worried about pricing, because there’s a lot of price adequacy,” she said.

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On an individual basis, the business can now support probable maximum losses of up to £50m for both annual policies and single-project risks within the UK.

In parallel, the MGA has obtained Lloyd’s capacity support on a prior submit basis. This development allows the London-based firm to assess Erection All Risks (EAR) business worldwide across territories approved by Lloyd’s of London.

Under this EAR proposition, capacity of up to $27m total insurable value is available, targeting a wide range of sectors such as steel, cement, mineral processing, breweries, bottling plants, dairies, semiconductor and pharmaceutical facilities, as well as data centres.

These enhancements build on the introduction of Phoenix Specialty’s Global CPE proposition, launched in mid-2025. Designed primarily for annual renewable business, the offering is accessible through both direct insurance and facultative reinsurance structures. Coverage extends to owned and hired plant across nearly all asset categories, whether above or below ground, and accommodates both lead and follow line placements. A disciplined, technical underwriting approach combined with active portfolio oversight supports the proposition.

Tim James, CEO of Phoenix Specialty, said: “This is a significant milestone for Phoenix and gives us further opportunity to expand our offering and better support our broker partners.”

“The additional backing we’re secured, on top of our existing capacity arrangements is testament to our focus on delivering a high-quality, dependable service, underpinned by the depth of underwriting expertise across our team.”

“We have made a fantastic start to 2026 and have a number of exciting projects in development. The team is energised and excited to continue working closely with our broker partners to grow our mutual accounts.”

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