Profits Up 115% Year-on-Year Says Beazley

It’s been a good year for Beazley, here’s an extract from the latest results;

Statement of the Chair

Beazley delivered a record pre-tax profit in 2023 of $1,254.4m representing an increase of 115% on the previous year (2022: $584.0m). This equated to a return on equity of 30% (2022: 19%) and earnings per share of 154.7c (2022: 79.0c). Our combined ratio reflected an excellent insurance service result as it improved to 71% (2022: 79%) and 74% on an undiscounted basis (2022: 82%).

These results enable the Board to commit to a share buyback programme of up to $325m. This is a powerful symbol of our confidence in the Company, its business model and the future. It reflects hard work over the last 12 months and I am pleased that we have repaid the confidence that you, our shareholders, place in us to deliver.

I was proud to take up the role of Chair of the Board of Directors in April 2023, and I’ve been impressed by the teams whom I have worked with across Beazley. Our colleagues demonstrate intellectual acuity, managerial agility and are committed to our values: Being Bold, Striving for Better and Doing the Right Thing. I am sure that, like me, the 545 other new colleagues we welcomed during 2023 will have recognised these values in their everyday experience. It is this that drives our competitive difference, enriching all our stakeholders.

Beazley aims to be the leading global sustainable specialty insurer. I am pleased to say that 2023 saw us make significant strides forward to deliver that.

Leading – Our track record is of strong financial results, which deliver excellent returns for our investors and shareholders, through insurance solutions that are valued by our clients and brokers.

Being a leader means both driving things forward and stepping back when market changes dictate. Leading is not easy, as the challenges in the cyber market this year have shown; but when systemic cyber risk needed to be addressed, Beazley was willing to ‘stand up’ and lead market thinking.

Global – We are a global company operating from 25 offices around the world. Through our wholesale platforms based in London, Miami and Singapore, we underwrite 53% of our Group premium. North America and European platforms contribute 40% and 7% respectively. In 2023, we further strengthened our global outreach with the appointment of Fred Kleiterp to lead our future strategic vision for Europe, plus the establishment of our onshore excess and surplus (E&S) carrier in the US, which commenced underwriting in January 2024.

Sustainable – We continue to manage the risk of a changing climate; harnessed to the real opportunities which energy transition will bring. I was pleased that we were able to present more detail on this at our Capital Markets’ Day in late November 2023. Our focus is on how, by better understanding the underlying risks ourselves, we can support clients to adapt in ways that will not only reduce their business risks but will actively protect our environment from the worst impacts of climate change.