Beazley Group plc Preliminary Results 26.02.08
Beazley Group released its preliminary results today.
KEY POINTS
- Profit before tax of £138.5m (2006: £86.8m)
- Profit before tax and foreign exchange on non monetary items increased to £130.3m (2006: £96.2m)
- Return on equity of 28.0% (2006: 20.0%)
- Final dividend of 4.0p per share, plus a special dividend of 4.0p per share
- Gross written premiums up 5% to £780.5m; net written premiums up 14% to £652.2m
- US$175.2m of business written through US operations (2006: US$68.9m)
- Investment and cash balances up to £1,490.6m (2006 year end £1,167.8m)
- Investment income at £64.9m (2006: £48.3m)
- Prior year reserve releases of £64.1m (2006: £31.0m)
- Market conditions
“On average, the rate charged for business we renewed fell by 4% in 2007 (2006:increase of 6%). Rating levels generally still compare favourably to the early2000's. The specialty lines business performed better than initially expected with decreases in rates of only 5%. Our shorter tail property insurance businesses enjoyed a reasonable start to the year but saw rates come under pressure in the second half. Property reinsurance rates eased but not to the same extent as the insurance business.”
Beazley Group Chief Executive Andrew Beazley said:
"The company delivered excellent results across the board in 2007. Our Lloyd's underwriters demonstrated strong risk analysis and selection skills and delivered very good returns as rates in most of our lines of business began to fall from historic highs. Our claims staff continued to win praise for their service from clients and brokers - as well as industry awards.In the United States, our operations grew rapidly, more than doubling the premiums written locally in that market. Our US-based underwriters are able to access smaller scale and less volatile business than is available to our underwriters at Lloyd's. This diversification of our business should stand us in good stead as the property/casualty market as a whole continues to soften."
To see the full report click here.
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