Beazley Q1 growth in line with
guidance
London, 29 April 2024
Beazley plc trading statement for the three months ended 31
March 2024
Overview
· Insurance written premiums
increased by 7% to $1,483m (Q1 2023: $1,384m)
· Net insurance written
premiums increased by 11% to $1,239m (Q1 2023:
$1,118m)
· Premium rates on renewal
business increased by 1% (Q1 2023: 10%)
· Investment income of $126m or
1.2% year to date (Q1 2023: income of $104m or
1.2%)
· Combined ratio guidance for
the year remains at low 80s on an undiscounted
basis
· Gross IWP growth guidance for
the year remains at high single digits
Adrian Cox, Chief Executive Officer,
said:
"It has been a solid start to the
year where we have demonstrated our ability to continue to grow
whilst exercising underwriting discipline. We are confident of
delivering our gross growth guidance for the year of high single
digits.
We remain optimistic about the
outlook for our business in 2024 and beyond, focussing on
continued, targeted growth and active capital management as the
rate environment normalises."
|
31 March
2024
|
31 March
2023
|
%
increase
|
Insurance written premiums
($m)
|
1,483
|
1,384
|
7%
|
|
|
|
|
Net insurance written premiums
($m)
|
1,239
|
1,118
|
11%
|
|
|
|
|
Investments and cash ($m)
|
10,827
|
9,080
|
19%
|
|
|
|
|
Year to date investment
return
|
1.2%
|
1.2%
|
|
|
|
|
|
Rate increase
|
1%
|
10%
|
|
Premiums
We launched our new E&S carrier
on 1 January 2024 and have been writing business on this platform
as planned. Following this, the mix of business within the Group
changes slightly this year. The Group retains a higher proportion
of Property business, and conversely a smaller proportion on MAP,
as this now cedes to third party capital at a higher rate. Overall
Group premium levels remain the same.
Our performance to the end of March
2024 by business division is as follows:
|
Insurance
written premiums
31 March
2024
|
Insurance
written premiums
31 March
2023
|
%
increase/
(decrease)
|
Year to
date rate change
|
|
$m
|
$m
|
%
|
%
|
|
|
|
|
|
Cyber Risks
|
253
|
280
|
(10%)
|
(5%)
|
Digital
|
63
|
57
|
11%
|
(3%)
|
MAP Risks
|
261
|
261
|
0%
|
2%
|
Property Risks
|
451
|
357
|
26%
|
7%
|
Specialty Risks
|
455
|
429
|
6%
|
1%
|
OVERALL
|
1,483
|
1,384
|
7%
|
1%
|
In Cyber Risks, the reduction in insurance
written premium shown in the first quarter is predominantly driven
by different premium recognition patterns as a result of us using
more distribution partnerships.
We remain confident in the short and
long term growth opportunities in this class and that underlying
rates which, despite the continued softening, remain
adequate. We are expecting moderate growth in
2024.
The geopolitical environment
continues to drive demand for the product set within MAP Risks and we remain confident about
the long term growth prospects.
We continue to see exciting
opportunities for Property
Risks as business increasingly moves into the E&S
market. We are well placed to take advantage of this as
demonstrated by 26% growth in the first quarter.
In Specialty Risks the D&O market
remains very competitive and we remain focussed on robust
underwriting discipline and cycle management. This includes
taking opportunities in smaller, niche areas within the division
which is reflected in the moderate growth seen in the first three
months of the year.
Claims
Overall, claims experience for the
first quarter is as expected. Total natural catastrophe
activity so far this year has been within the margins we hold in
our reserves for such events.
Investments
Our
portfolio allocation was as follows:
|
31 March
2024
|
31 March
2023
|
|
Assets
|
Allocation
|
Assets
|
Allocation
|
|
$m
|
%
|
$m
|
%
|
Cash and cash equivalents
|
1,016
|
9.4
|
714
|
7.9
|
Fixed and floating rate debt
securities
|
|
|
|
|
- Government
issued
|
4,289
|
39.6
|
4,629
|
51.0
|
- Corporate
bonds
|
|
|
|
|
- Investment
grade
|
3,683
|
34.0
|
2,369
|
26.1
|
- High
yield
|
625
|
5.8
|
356
|
3.9
|
Syndicate loans
|
36
|
0.3
|
33
|
0.4
|
Derivative financial
assets
|
5
|
-
|
12
|
0.1
|
Core portfolio
|
9,654
|
89.1
|
8,113
|
89.4
|
Equity funds
|
393
|
3.6
|
204
|
2.2
|
Hedge funds
|
580
|
5.4
|
530
|
5.8
|
Illiquid credit assets
|
200
|
1.9
|
233
|
2.6
|
Capital growth assets
|
1,173
|
10.9
|
967
|
10.6
|
Total
|
10,827
|
100.0
|
9,080
|
100.0
|
Our investment portfolio returned
$126m, or 1.2%, in the first quarter. Financial markets were
buoyed by resilient US economic data, with our equity, credit and
hedge fund investments all producing strong returns.
Risk-free yields rose, as rate cut
expectations subsided, resulting in more modest returns from our
fixed income investments. However, the current yield of our
fixed income portfolio (5.1% at the end of March) leaves it well
placed to make a good contribution to our returns going
forward.
Conference call for analysts and investors will be held at 8am
GMT on Monday 29 April
Dial
in details for analysts:
UK-Wide: +44 (0)
33 0551 0200
Webcast Link for all other participants:
https://brrmedia.news/BEZ_Q124
ENDS
For further information:
Investors and
analysts
Sarah Booth
+44
(0) 207 6747582
Media
Sam
Whiteley
+44
(0) 207 6747484
Note to editors:
Beazley plc (BEZ.L), is the parent
company of specialist insurance businesses with operations in
Europe, North America, Latin America, and Asia. Beazley manages six
Lloyd's syndicates and, in 2023, underwrote gross premiums
worldwide of $5,601.4million. All Lloyd's syndicates are rated A by
A.M. Best.
Beazley's underwriters in the United
States focus on writing a range of specialist insurance products.
In the admitted market, coverage is provided by Beazley Insurance
Company, Inc., an A.M. Best A rated carrier licensed in all 50
states and its subsidiary, Beazley America Insurance Company, Inc.
In the surplus lines market, coverage is provided by the Beazley
syndicates at Lloyd's, and from 1 January 2024, also from Beazley
Excess and Surplus Insurance, Inc.
Beazley's European insurance
company, Beazley Insurance dac, is regulated by the Central Bank of
Ireland and is A rated by A.M. Best and A+ by Fitch.
Beazley is a market leader in many
of its chosen lines, which include Professional Indemnity, Cyber
Liability, Property, Marine, Reinsurance, Accident and Life, and
Political Risks and Contingency business.
For more information please go
to: www.beazley.com