Beazley Posts Healthy Results for Q1 2024

Beazley has issued a trading statement for the three months ended 31 March 2024 and the news is good. Here are the highlights;

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.”

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.

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.”

Property

“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.”