Lloyd’s set to diversify with ‘very good’ syndicate pipeline – AM Best

Lloyd’s has a “very good” pipeline of new syndicates, providing the marketplace with “added diversification” across new geographies and products, according to Mahesh Mistry, senior director and head of analytics for London at credit rating agency AM Best.

Speaking during a briefing event on 6 September 2026 at Monte Carlo’s Rendez-Vous de Septembre (RVS) conference, Mistry explained that Lloyd’s was set to achieve additional diversification across its books thanks to a “very good” pipeline of new syndicate launches, focusing on classes such as reinsurance and credit risk, for example, as well as new geographies.

Mistry told delegates: “The pipeline is very good in terms of new syndicates that are coming and taking place in Lloyd’s – and that gives [the market] further added diversification.

“Clearly, Lloyd’s is doing [a] very good job of [attracting] interest [around] having access to Lloyd’s, to get on [its] platforms and [access its] business globally. From what we’re seeing, there is a lot of companies that are interested in joining [the marketplace]. There is a lot of pipeline.”

One example of such activity is the launch of Syndicate 2126 in October 2025 by The Fidelis Partnership (TFP), backed by funds managed by American alternative investment management company Blackstone.

The syndicate writes property, specialty and bespoke business, including through TFP’s Pine Walk MGA platform and via reinsurance of existing Fidelis group operations.

For Mistry, a key driver of this increased interest in Lloyd’s syndicates is AM Best’s rating upgrade in August 2024. This saw the agency improve the marketplace’s financial strength rating from an ‘excellent’ A score to a ‘superior’ A+ result.

“There is a fair degree of scrutiny in terms of who Lloyd’s would take on. With their upgrade a few years back, obviously [this] broadened support for [syndicates],” Mistry said.

A ‘fundamentally well’ performance

Mistry added that Lloyd’s has “been doing fundamentally well” – as is evidenced by its 2026 half-year financial results, published on 3 September 2026 ahead of the RVS event.

In fact, Lloyd’s attributed a 6.9% uptick in gross written premium (GWP) over the first six months of the year – to reach a total of £34.7bn – to “growth from new and existing syndicates”.

It additionally reported an underwriting profit of £1.9bn for 2026’s H1 and a combined operating ratio (COR) of 90.8% – although the market’s profit before tax decreased from £4.2bn in H1 2025 to £3.5bn for the same reporting period this year.

Mistry noted: “Lloyd’s [has] been doing fundamentally well. [It has] restructured, reconditioned more rigour in terms of the business planning of the syndicates and you can see that in the results that are coming through. So, the structure, the coverage and all of that is looking more favourable.

“[It has] booked, I believe, around £1.4bn reserve for Middle East losses [surrounding the war], which is taken from the syndicates’ information and their loading as well, but that is lower than the wildfire losses last year. So, the performance has actually been better.”

Mistry further flagged “a lower investment income coming through as well”. Lloyd’s reported at half-year an investment return of £1.8bn versus £3.2bn in 2025’s H1.