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Beazley profit jumps on higher insurance rates, raises outlook

Published 23/07/2019, 07:39
© Reuters.  Insurer Beazley's profit jumps on higher policy rates
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(Reuters) - Lloyd's of London insurer Beazley Plc (L:BEZG) said on Tuesday its first-half earnings nearly tripled from last year, as it wrote more policies at higher rates and said it expects double-digit premium growth over the year.

While the industry has struggled with stagnant rates due to stiff competition, Beazley has managed to raise premium rates after a string of industry-wide catastrophe claims led to hefty bills in the last couple of years.

The company, which provides casualty and property, cyber and political risk insurance, said pre-tax profit rose to $166.4 million ( £133.6 million ) for the six months ended June 30, from $57.5 million a year earlier, as gross written premiums rose 12% to $1.48 billion.

However Beazley's combined ratio, which measures costs against revenue, rose to 100% compared with 95% last year, due to higher claims in some units.

"Claims concentrated largely in our marine and reinsurance divisions drove our combined ratio to 100%, but premium rates have adjusted accordingly and margins in many lines of business now look healthier than they have in some years," Chief Executive Officer Andrew Horton said.

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