Lloyd’s boss warns of ‘man-made catastrophes’ as Iran war hits insurance industry
Squeezed by inflation and rising geopolitical tensions, the historic insurance market Lloyd’s of London suffered a hit to its profit in the first half of the year. Nowhere was this impact more acute than in its marine business, which faced severe pressure at the height of the US war with Iran. Over the past six [...]
Lloyd’s of London, the historic insurance market, has reported a 16.7 per cent drop in pre-tax profit to £3.5bn for the first half of 2026, amid a softening market and geopolitical tensions. The marine sector, particularly hit by the US war with Iran, faced severe pressure as thousands of vessels were trapped in the Persian Gulf.
The Strait of Hormuz closure and attacks on vessels forced the London Joint War Committee to expand its designated high-risk areas to include the coastlines of Bahrain, Qatar, and Oman, leading to a sharp rise in premiums. Lloyd’s CEO Patrick Tiernan emphasized that the industry is now facing "man-made catastrophes" and must be prepared for unpredictable scenarios, moving away from predicting specific risks.
The softening market is driven by abundant capital and high insurer profits, causing premium rates to drop and compressing profit margins. Despite this, Lloyd’s has seen existing businesses retain their connections to the market and new entrants joining, largely due to the capital advantage provided by Lloyd’s.
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