LLOYD'S INVESTMENT SURVEY 2025 PDF Free Download
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In association with
LLOYD’S
INVESTMENT
SURVEY 2025
Brought to you by New England
Asset Management Limited
NEAM Limited is pleased to have collaborated with The Insurer for the seventh year of this survey. The
questionnaire was sent to key decision makers at each of the Lloyd’s Managing Agents and we were
delighted to achieve a response rate of over 60%.
Focused solely on the global insurance sector and active in the Lloyd’s Market since 1998, we at NEAM are
aware how challenging it is to access investment information for this unique market. In this annual survey,
we aim to identify some of the major investment trends for Lloyd’s Managing Agents. Below are some key
ndings, followed by our survey results in full.
As we have consistently identied over previous years of this survey, outsourcing asset management
is by far the most popular way for the market to manage their assets, providing access to professional
investment services while offering efciencies in both cost and resources.
The typical duration prole continues to be short with the vast majority of respondents indicating a duration
of less than 3 years. Given the role of assets in servicing liabilities and the nature of lines underwritten by
the market, we would expect this prole to persist going forward.
High quality corporates continue to form a dominant allocation in portfolios with allocations to BBBs being
less than 10% for most. Likewise, non-core assets still form a minority allocation with most keeping their
allocation to 5% or less.
74% 86%
Outsource Duration <3Yrs
SURVEY – KEY FINDINGS
NEAM, Inc. has been managing assets for Lloyd’s of London clients since 1998. NEAM Limited has been managing assets for Lloyd’s of London clients since 2010.
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
74% 63% 74% 80%
>25% allocated to
Corporates
<10% allocated to
BBBs
<10% allocated to
Structured Securities
<5% allocated to
Non-Core
Structured Securities are seeing an uplift in interest. It is clear from responses that there is plenty of
scope for the market to further engage with this asset class. Following the publishing of The Securitisation
Regulations 2024 by the UK government, which claried the capital charge and regulatory treatment of this
asset class in the post-Brexit era, we expect see increased investment across Lloyd’s market portfolios
given that certain Structured Securities work particularly well in the Lloyds environment, being highly rated
and low duration.
Including ESG parameters within investment guidelines is now very much the norm for the market with 89%
of participants conrming this, up from 68% back in 2022. Lloyd’s ESG guidance continues to be the anchor
of most respondents’ policies with just 26% implementing more extensive parameters in their guidelines.
Impact investments of any kind continue to be a peripheral allocation for most. We expect this to continue
into 2025 given the rapidly dwindling GSSS bond issuance by US companies reducing already constrained
options for insurance investors.
Amidst this widespread uncertainty, general sentiment on the outlook for 2025 is comparatively negative
with over 70% or respondents expecting either no change or lower investment yields.
NEAM LLOYD’S INVESTMENT SURVEY 2025
89% 68% 57% 17%
ESG parameters
incl. in guidelines
Aligned with Lloyd’s
guidance
Require manager to
be PRI signatory
Planning allocation to
impact investment
¹ NEAM, Inc. has been managing assets for Lloyd’s of London clients since 1998. NEAM Limited has been managing assets for Lloyd’s of London clients since 2010.
² Green, Social, Sustainable and Sustainability-linked Bonds
New England Asset Management Ltd
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Investment Management
How are the syndicate(s)’ assets managed?
Outsourced asset manager(s)
Affiliated / internal asset manager
Both affiliated / internal and outsourced
asset managers
74%
12%
14%
New England Asset Management Ltd
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Average Duration of Core Fixed Income Allocation
NEAM LLOYD’S INVESTMENT SURVEY 2025
How do you anticipate average duration will change in 2025?
Increase
Decrease
No change
20.00%
9%
71%
0-2 years
2-3 years
3-5 years
Over 5 years
What is the average duration of your
Syndicate’s core fixed income portfolio?
26%
60.00%
14%
How did this allocation change in 2024?
37%
60%
Increased
Decreased
No change
3%
New England Asset Management Ltd
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Corporate Bonds (Investment Grade)
NEAM LLOYD’S INVESTMENT SURVEY 2025
Corporate Bonds (Investment Grade)
Increased
Decreased
No change
6%
Approximately what percentage of your Syndicate’s
portfolio is comprised of Corporate bonds?
0-25%
26-50%
51-75%
Over 75%
26%
31%
37%
How did this allocation change in 2024?
20%
14%
66%
How do you anticipate this allocation will change in 2025?
Increase
Decrease
No change
14%
14%
72%
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
6%
None
0-10%
11-25%
26-50%
Over 50%
Approximately what percentage of your Syndicate’s
portfolio is comprised of BBB rated bonds?
20%
43%
31%
How did this allocation change in 2024?
Increased
Decreased
No change
14%
6%
80%
How do you anticipate this allocation will change in 2025?
Increase
Decrease
No change
6%
8%
86%
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
Structured Securities / Assets
Increased
Decreased
No change
3%
0%
1-5%
6-10%
11-20%
21-30%
Over 30%
26%
11%
37%
23%
Approximately what percentage of your Syndicate’s
portfolio is comprised of Structured Securities / Assets?
6%
How did this allocation change in 2024?
31%
63%
How do you anticipate this allocation will change in 2025?
Increase
Decrease
No change
23%
9%
68%
Structured Securities / Assets
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Other (please specify in comments)
Increase
Decrease
No change
6%
How do you anticipate this allocation will change in 2025?
17%
77%
None
High Yield
Emerging Markets
Equities
Investment Grade Private Credit
Below-investment Grade Private Credit
Not applicable
If considering an allocation in 2025, select
any or all of the below that you may consider:
25%
28%
16%
22%
37%
22%
9%
16%
Yes
No
Are ESG parameters currently included in the investment
guidelines for your syndicate(s) portfolio?
89%
11%
Environmental, Social and Corporate Governance (ESG)
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
Environmental, Social and Corporate Governance (ESG)
New England Asset Management Ltd
9
NEAM LLOYD’S INVESTMENT SURVEY 2025
Yes
No
Does your organisation plan to add ESG parameters to
investment guidelines over the coming 12 months?
50%50%
3%
Less restrictive
Aligned
More extensive
Not sure
How do the ESG parameters in your current Syndicate
investment guidelines compare against Lloyd’s requirements:
68%
26%
How do you anticipate your ESG parameters
will compare against Lloyd’s requirements:
Less restrictive
Aligned
More extensive
Not sure
50%
50%
3%
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
Yes
No
Yes
No
Do you require your asset manager(s) to be a signatory of
the PRI “Principles for Responsible Investing”?
57%
43%
Do you plan to target an allocation to GSSS¹ labelled bonds in 2025?
¹Green, Sustainable, Social, Sustainability-linked Bonds
14%
86%
86%
14%
If yes, what percentage allocation of assets
under management will you target?
<5%
5-10%
10%
>10%
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
6%
Yes
No
<5%
5-10%
>10%
Do you plan to target an allocation to impact funds in 2025?
94%
If yes, what percentage allocation of assets
under management will you target?
75%
25%
Yes
No
Do you plan to target a reduction in portfolio
GHG emissions in 2025?
11%
89%
<5%
5-10%
>10%
Yes
No
If yes, what percentage reduction will you target?
67%
33%
12%
88%
Is the higher level of investment yield influencing
pricing on the underwriting side of your business?
No change
Higher for longer
Likely to revert to lower yields
24%
29%
47%
What is your view of investment yield
for the coming 12 months?
OTHER
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
Other
New England Asset Management Ltd
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NEAM LLOYD’S INVESTMENT SURVEY 2025
No / negligible impact
Higher risk appetite for investing
(as a % of overall risk budget)
Lower risk appetite for investing
(as a % of overall risk budget)
Undecided
Unlikely – more or less decided
this is not for our firm
Not likely but monitoring the development
70%
21%
What impact has the recent positive momentum on underwriting
results had on risk appetite for investing / market risk?
9%
Actively considering making an investment
Invested and possibly pursuing more
In 2023, Lloyd’s launched their investment platform. How likely
are you to invest through this platform in the next 12 months?
18%
21%
26%
12%
23%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Private Impact Fund
US Direct Lending Fund
USD Enhanced Yield Liquidity Fund
CAD Multi-sector Strategies
USD Multi-sector Strategies
GBP Enhanced Liquidity Fund
EUR Enhanced Liquidity Fund
20%
30%
30%
60%
10%
10%
Which of the following have you invested / been considering?
0%
The material contained in this report has been prepared solely for informational purposes by the The Insurer’s team and New England Asset
Management Limited (NEAM Limited). The material is based on sources believed to be reliable but we do not represent as to its accuracy or its
completeness. This is not an offer to buy or sell any security or nancial instrument. This document and its contents are proprietary to NEAM.
Any reference in this presentation to “NEAM” is dened as NEAM Limited and New England Asset Management, Inc. NEAM provides investment
management services primarily to insurance companies. NEAM Limited is a subsidiary of NEAM, Inc. NEAM Limited is regulated by the Central Bank
of Ireland. NEAM Limited London Branch is authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct
Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. This report is not intended
for distribution to, or use by, any person or entity where such distribution or use would be contrary to law or regulation or which would subject NEAM
to any registration requirement. This is not an offer to conduct business in any jurisdiction in which NEAM, Inc. or NEAM Limited are not registered
or authorized to conduct business.
Is it time you reviewed
your asset allocation?
Contact us to see
how NEAM can help
Alverne Bolitho:
alverne.bolitho@neamgroup.com
+44 20 776 73351
Kasha Mleko:
kasha.mleko@neamgroup.com
+353 1 673 8504
