REGISTERED NUMBER: 02571285 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

LLOYD'S MARKET ASSOCIATION

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Statement of Directors' Responsibilities

8

Report of the Independent Auditors

9

Statement of Income and Retained Earnings

12

Balance Sheet

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

S M Cameron

S G McGovern

P J Davenport

H R Brennan

C Fresneau

L Harfitt

K J M Markham

H J L Withinshaw

S Sawhney

J Warren

A Ramage

A G Beatty

C E H Potts

J Fowle

R T Milner

B J Greenwood

D H Dale

J A Owen

J M Newman

S J Stanford

V Syal

E L Woolley

V V V Mistry

N J Moore

M Bellamy

SECRETARY:

C E Traxler

REGISTERED OFFICE:

Suite 426

One Lime Street

London

EC3M 7DQ

REGISTERED NUMBER:

02571285 (England and Wales)

BANKERS:

National Westminster Bank Plc

1st Floor

65 Piccadilly

London

W1A 2PP

The directors present their strategic report for the year ended 31 December 2025.

KEY PERFORMANCE INDICATORS

As an association with the primary purpose of representing and advocating for our members on a wide range of issues affecting the market, much of what we deliver is not easily captured in quantifiable measures.

The product metrics which we monitor as a measure of our success relate to the model wordings published and the learning delivered by the LMA Academy.

Metric

2025

2024

2023

Number of model policy clause wordings issued

121

120

99

LMA Academy events

67

65

61

LMA Academy event attendees

1,181

1,325

1,256

LMA Academy total learning hours

12,580

12,871

10,787

As an association which is not required to pay dividends to members, our objective is to achieve a modest surplus or deficit each year and maintain net assets no less than a third of our annual administrative costs. This approach has ensured that the membership subscription fee remained flat from 2024 to 2025.

Metric

2025

2024

2023

Operating result before Interest Receivable

(£466,064)

£165,950

£390,383

Net Assets

£5,401,334

£5,733,809

£5,311,918

Membership Subscription Fee (per £1m of premium capacity)

£210

£210

£220

To monitor the less quantifiable aspects of our effectiveness, a Committee Effectiveness Survey is conducted each year. For 2025, 94.5% of respondents 'agree' or 'strongly agree' that our committees work collectively to achieve their objectives (2024: 94.7%).

BUSINESS REVIEW

In January 2025, the Lloyd's Market Association ("LMA") announced four priorities for the year ahead.

1. Simplify and digitise our market.

We identified five components to prioritise and the progress under each was as follows:

a) In March 2026, Lloyd's announced the 'sunsetting' of Blueprint Two in favour of an incremental approach. We continue to lobby for piece-meal upgrades to maintain the resilience of the Velonetic platform.

b) Working through the Data Council, we continue pressing for a comprehensive Lloyd's data strategy. The Claims Core Data Record ("CDR") was published in November and we established a 'coalition of the willing' from brokers, Lloyd's, managing agents and companies to pilot all CDRs.

c) Further steps towards reduction and simplification of Lloyd's financial reporting were achieved, with the LMA taking direct leadership of one of the workstreams into 2026.

d) Good progress has been made on implementation and targeted adoption of the Computable Binding Authority Agreement, with over 400 new wordings created. These are now planned to be published in Q2 2026, together with the data information model.

e) We have worked with Lloyd's to maintain and safeguard the LMA wordings platform, with a revised plan to conduct a Request for Proposal process in early 2026 for alternative solutions.

2. Leverage the market's technical expertise to influence policy

Strong progress was made on our two-year international engagement strategy, with Q4 focused on the US with representation at the National Association of Insurance Commissioners conference and meetings with House representatives in Washington DC. In the EEA, using the strong relationships developed with Lloyd's Insurance Company, we supported the successful transition to a Reinsurance Collateral Deposit model with participation from all managing agents.

Our lobbying focus for both EU and UK regulators was on their definition of 'consumer' as part of a broader drive towards a competitive regulatory framework for wholesale and specialty insurance. The FCA published changes in December 2025 which gave us some wins regarding product review frequency and lead responsibilities. However, there is a need to continue pressing for our primary areas of concern to be addressed in 2026, especially consumer definition and international alignment. We look forward to working with the new head of insurance at the FCA on these matters in 2026.

The LMA has collaborated with Lloyd's and managing agents towards a successful implementation of changes to the Principles for Business Oversight framework, including claims, culture, follow market evolution and attestation processes.

As a follow up to the Capital Insights report and enhanced underwriting reports, the LMA worked with a wide range of stakeholders on new research into the developing role of the leader and follow market models. This was published in February 2026.

3. Support, engage, represent and find solutions for Lloyd's underwriters.

We concentrated on four priorities in this area in 2025.

a) We responded to market issues as they arose through a robust committee matrix and model wordings development regime.

b) Although it is developing more slowly than expected, we supported the market on the implementation of the Lloyd's delegated authority strategy.

c) We set out to support the market on the implementation of the Lloyd's legacy market strategy. While the 'Reinsurance to close' clause update was completed, there is further progress needed with Lloyd's on its legacy strategy.

d) In 2025, we broadened the range of thought leadership pieces, spanning key underwriting topics, energy transition, capital, claims issues and market performance, as well as publishing numerous articles and blogs, several videos and podcasts and hosting over 60 events.

4. Increase the market's technical expertise and broaden its talent pool.

The Claims team at the LMA implemented their agreed strategy for early talent, including the launch of job simulations to showcase career opportunities in claims. This has promoted claims as a career destination and strengthened the talent pipeline in this vital area for the market.

The LMA Academy delivered 67 training programmes, attended by 1,181 delegates which equates to 12,580 of training hours for the market in 2025. This included the launch of the new Early Talent Kickstarter Programme, designed for early professionals with under one year of work experience. The immersive four-week development programme provides a comprehensive, dynamic and hands-on introduction to the world of Lloyd's insurance and provides the essential technical skills and knowledge required to make an immediate contribution to their new employer. It ran during October 2025 with 22 attendees from nine managing agencies.

The LMA boosted its support for the market's targets for female underwriters through holding an underwriting talent summit event in Q4 2025, which was hugely successful.

FUTURE DEVELOPMENTS

In January 2026, the LMA laid out its priorities for this year. These reflect our commitment to build on Lloyd's reputation as the beating heart of global (re)insurance. There are four key areas.

1. Underwriting

The LMA will facilitate the formation and representation of market opinion on emerging trends in underwriting and claims. In 2026, these will include analysis of leader roles, as well as facilitised business and how these models might evolve. We will also continue our support of the market to increase the number of senior female underwriters.

2. Technical expertise

Our LMA Academy will remain focused on technical skills development at early-talent, foundation and intermediate levels. We will also continue to promote career pathways in claims, finance and operations to support talent attraction and retention across the market.

3. Simplify and digitise

The LMA will advance ongoing digital and data projects, including completing digital Core Data Records and testing the re-platformed Velonetic back office. We will also undertake new work with Lloyd's on a market-wide data strategy, better use of underwriting/claims data and continued reporting simplification.

4. Regulatory influence

We will accelerate our work with Lloyd's and the LMG to lobby UK and EU regulators on critical issues, such as consumer definitions. In the US, we will strengthen engagement with regulators in the Excess and Surplus lines market. In the UK, we will continue to lobby Lloyd's on regulatory issues where change is needed, including advocating for managing agent viewpoints in the review of Lloyd's governance.

RISKS AND UNCERTAINTIES

The LMA is an association with members who operate in a highly regulated financial services sector. We therefore consider it important to identify the risks and uncertainties which affect how we work with our members and to manage them effectively. The most significant risks identified through our risk management framework and how we manage them are described below.

Risk

Mitigating Controls

The LMA's reputation is damaged by the actions of Lloyd's or the market, for example, failure to deliver major change programmes or cultural issues.

The LMA is closely engaged in the governance of market-wide programmes. However, due to the number of stakeholders involved in such programmes, there is an inherent limit to our control over the effectiveness of governance bodies.

The LMA is found in breach of competition law through the market's use of model policy clause wordings which the LMA has produced and published, or its committees.

LMA wordings are classified as model wordings and as such they are not mandatory and may be used or amended by our members. We do not copyright the clauses. The LMA's drafting, review and publication process has been reviewed by external counsel as compliant with competition law. The LMA has published guidance on competition law which is referred to at each committee meeting. Mandatory training on competition law is held for all new starters and annual training for all employees. Annual training for the Board and committees.

ON BEHALF OF THE BOARD:

S M Cameron - Director

18 June 2026

The directors present their report with the audited financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The Lloyd's Market Association (LMA) is a company limited by guarantee whose members include all underwriting agents operating in the insurance market of Lloyd's. Through the LMA, the interests of Lloyd's underwriters, managing agents and members' agents are represented wherever decisions need to be made that affect the market.

BUSINESS REVIEW AND FUTURE DEVELOPMENTS

A full business review of activities in 2025, plus a summary of the future developments and priorities for 2026 have been set out within the strategic report on page 2.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to 31 December 2025:

S M Cameron

S G McGovern

P J Davenport

H R Brennan

C Fresneau

L Harfitt

K J M Markham

A Ramage

S Sawhney

J Warren

H J L Withinshaw

A G Beatty

C E H Potts

J Fowle

R T Milner

D H Dale

J A Owen

S J Stanford

V Syal

Other changes in directors holding office are as follows:

R S Anarfi - resigned 11 February 2025

B J Greenwood - appointed 11 February 2025

C J R Rash - resigned 5 March 2025

E L Woolley - appointed 27 March 2025

J M Newman - appointed 2 April 2025

K Roy - resigned 2 April 2025

E A Wolliston- resigned 9 July 2025

A J P Powell-- resigned 22 November 2025

A L Brooks- resigned 31 December 2025

V V V Mistry- appointed 20 January 2026

N J Moore- appointed 20 January 2026

M Bellamy- appointed 8 June 2026

GOVERNANCE

The Finance, Operations and Remuneration Committee of the Board reviews the services, activities, and costs of the LMA regularly to ensure that its services and activities meet the needs of members and are delivered in a cost effective manner.

GOING CONCERN

No material uncertainties that may cast significant doubt about the ability of the Company to continue as a going concern have been identified by the directors. The financial statements have been prepared on a going concern basis.

CHARITABLE DONATIONS AND EXPENDITURE

Donations of £3,326 (2024: £4,706) were made to charities during the year.

THIRD PARTY INDEMNITY PROVISION

As permitted by the articles of association, the directors had the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force.

DISCLOSURE OF INFORMATION TO AUDITORS

The directors who held office at the date of the approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditor is unaware; and each director has taken all the steps that he ought to have taken as a director to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

AUDITORS

The audit registration of Kreston Reeves LLP was transferred to Kreston Reeves Audit LLP during the year. Kreston Reeves Audit LLP were formally appointed as auditors to the company on 20 February 2026.

Kreston Reeves Audit LLP,Statutory Auditor,London, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S G McGovern - Director

18 June 2026

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with applicable law and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (UK Generally Accepted Accounting Practice).

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent; and

- assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Opinion

We have audited the financial statements of Lloyd's Market Association (the 'Company') for the year ended 31 December 2025, which comprise the Statement of income and retained earnings, the Balance Sheet, the cashflow statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the Company's affairs as at 31 December 2025 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and Director's Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit;

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 8, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included:

- Discussions with management and assessment of known or suspected instances of non compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and

- Assessment of identified fraud risk factors; and

- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and

- Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and

- Reading minutes of meetings of those charged with governance; and

- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Cook BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Kreston Reeves Audit LLP,Statutory Auditor,London

Second Floor

168 Shoreditch High Street

London

E1 6RA

18 June 2026

TURNOVER

3

12,205,083

11,435,452

Administrative expenses

(13,808,692

)

(12,355,365

)

(1,603,609

)

(919,913

)

Other operating income

1,146,079

1,087,564

(457,530

)

167,651

Interest receivable and similar income

6

229,125

255,941

(228,405

)

423,592

Finance costs

7

(8,534

)

(1,701

)

(LOSS)/PROFIT BEFORE TAXATION

8

(236,939

)

421,891

Tax on (loss)/profit

10

23,663

(119,199

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(213,276

)

302,692

Retained earnings at beginning of year

5,614,610

5,311,918

RETAINED EARNINGS AT END OF YEAR

5,401,334

5,614,610

FIXED ASSETS

Intangible assets

11

-

433

Tangible assets

12

170,728

181,248

170,728

181,681

CURRENT ASSETS

Debtors

13

936,312

648,875

Cash and Cash Equivalents

14

12,150,606

8,745,631

13,086,918

9,394,506

CREDITORS

Amounts falling due within one year

15

(7,853,638

)

(3,936,490

)

NET CURRENT ASSETS

5,233,280

5,458,016

TOTAL ASSETS LESS CURRENT LIABILITIES

5,404,008

5,639,697

PROVISIONS FOR LIABILITIES

17

(2,674

)

(25,087

)

NET ASSETS

5,401,334

5,614,610

RESERVES

Retained earnings

18

5,401,334

5,614,610

5,401,334

5,614,610

The financial statements were approved by the Board of Directors and authorised for issue on 18 June 2026 and were signed on its behalf by:

S G McGovern - Director

Cash flows from operating activities

Cash generated from operations

1

3,219,545

11,090

Tax paid

23,663

(119,199

)

Net cash from operating activities

3,243,208

(108,109

)

Cash flows from investing activities

Purchase of tangible fixed assets

(58,825

)

(71,680

)

Sale of tangible fixed assets

-

4,006

Finance costs

(8,533

)

(1,701

)

Interest received

229,125

255,941

Net cash from investing activities

161,767

186,566

Increase in cash and cash equivalents

3,404,975

78,457

Cash and Cash Equivalents at beginning of year

2

8,745,631

8,667,174

Cash and Cash Equivalents at end of year

2

12,150,606

8,745,631

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(236,939

)

421,891

Depreciation charges

69,344

77,461

Loss on disposal of fixed assets

-

2,551

Amortisation

433

1,300

Finance costs

8,534

1,701

Finance income

(229,125

)

(255,941

)

(387,753

)

248,963

(Increase)/decrease in trade and other debtors

(287,437

)

252,471

Increase/(decrease) in trade and other creditors

3,894,735

(490,344

)

Cash generated from operations

3,219,545

11,090

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and Cash Equivalents

12,150,606

8,745,631

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and Cash Equivalents

8,745,631

8,667,174

Cash and Cash Equivalents includes funds of £5,641,132 (2024:£1,648,544) held on behalf of the market for initiatives as directed by market governance committees.

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash and Cash Equivalents

8,745,631

3,404,975

12,150,606

8,745,631

3,404,975

12,150,606

Total

8,745,631

3,404,975

12,150,606

4.	CREDITOR MOVEMENT

There is a creditor movement of £3,894,735 of which £3,992,587 relates to an increase in DXC funds.

1.	STATUTORY INFORMATION

Lloyd's Market Association is a limited company, limited by guarantee, registered in England and Wales. The company's registered office address is Suite 426, One Lime Street, London, EC3M 7DQ and its registered number is 02571285.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is Pound Sterling (£) and figures are rounded to the nearest £1.

Going concern

At 31 December 2025, the company had net current assets of £5,232,030 (2024: £5,458,016) and net assets of £5,377,671 (2024: £5,614,610). The directors have reviewed the future cash flows of the association and are confident all liabilities will be met as they fall due so the going concern basis is appropriate.

Critical accounting judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the directors opinion, there are no critical accounting adjustments.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as disclosed in the accounting policies and notes to the financial statements:

Depreciation Charge

The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors.

Turnover

Subscription income from members is credited to the profit and loss account on an accruals basis. Proceeds from the provision of training and other information services are also included in turnover. These are credited to the profit and loss account on an accruals basis.

Tangible fixed assets

All tangible fixed assets are recorded at cost less depreciation and accumulated impairment losses. Depreciation is provided on all tangible fixed assets on cost or revalued amounts in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:

Computer equipment

3 years

Office equipment

3 years

Furniture and fittings

7 years

An assessment is made at each reporting period for any indicators of impairment and an impairment review is carried out where an indication of impairment has been identified.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in the profit and loss account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or direct in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The applicable Corporation Tax rate was 19% to 1 April 2023 and 25% thereafter.

Other interest receivable and similar income

Interest income is recognised in the profit and loss account in the period it is received.

Interest payable

Interest expenses are recognised in the profit and loss account in the period in which they are incurred.

Operating and finance leases

Where the company has substantially all the risks and rewards of ownership of an asset subject to a lease, the lease is treated as a finance lease. All other leases are treated as operating leases.

Assets held under finance leases are capitalised at their fair value on the inception of the leases and depreciated over their estimated useful lives. Future instalments payable under finance leases, net of finance charges, are included in creditors - with the corresponding asset values recorded in tangible fixed assets and depreciated over the shorter of their estimated useful lives or their lease terms. Payments are apportioned between the finance element which is charged to the profit and loss account and the capital element which reduces the outstanding obligation for future instalments.

Operating lease rentals payable are charged to the profit and loss account on a straight line basis over the lease term.

Operating lease rentals receivable, where not a principal activity, are presented net against the associated lease costs in the profit and loss account.

Pensions and other post-retirement benefits

Beginning 1 October 1998, the company established a new money purchase pension scheme for directors and staff on a defined contribution basis. The profit and loss account charge from this commencement date reflects the defined contribution scales and these are charged to the profit and loss account in the period in which contributions are paid. The scheme's funds are independent of the company's finances.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Other income

LMA Academy income is accounted for as it falls due.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

2025

2024

£

£

Subscription income

11,762,583

10,949,237

Recharge income

442,554

486,215

12,205,083

11,435,452

Turnover is solely in respect of continuing activities undertaken in the United Kingdom and is stated net of value added tax.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

7,918,784

7,132,007

Social security costs

1,107,590

878,433

Other pension costs

885,654

827,112

9,912,028

8,837,552

The average number of employees during the year was as follows:

2025

2024

Technical Staff

43

40

Management

8

7

Business Support Staff

10

9

61

56

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Director's emoluments

1,811,289

1,735,748

Four of the directors in 2025 (2024: Four) listed on page 1 were full time salaried executives of the company. Director's emoluments include cash allowances in lieu of company pension contributions.

The Highest paid director during the year earned remuneration of £736,849 (2024: £719,652).

During the year remuneration, including cash allowances in lieu of pension contributions, of £851,388 (2024: £953,553) were paid to three (2024: three) key management personnel who were not directors of the company.