Beazley Plc has reported its 2019 year-end results today to the London Stock Market. The key numbers are:
· Profit before tax of $267.7m (2018: $76.4m)
· Return on equity of 15% (2018: 5%)
· Gross premiums written increased by 15% to $3,003.9m (2018: $2,615.3m)
· Combined ratio of 100% (2018: 98%)
· Rate increase on renewal portfolio of 6% (2018: 3%)
· Prior year reserve releases of $9.5m (2018: $115.0m)
· Net investment income of $263.7m (2018: $41.1m)
Commenting on the results, Andrew Horton CEO of Beazley said: “Beazley achieved a profit before tax of $267.7m in 2019, driven by a very strong investment return of $263.7m. Overall gross premiums written increased by 15% to $3,003.9m, with three of our six divisions achieving double digit growth.”
“An adverse claims experience across several lines of business, leading to reduced prior year reserve releases, meant that our combined ratio rose to 100% for 2019. Despite this, we are optimistic that the remedial action that we have been taking across several lines of business in recent years, alongside the expected continued premium rate increase, will favour us as we move into 2020."
Encouragingly, Beazley witnessed rate increases on renewal portfolios of 6%, double the previous year. Prior year reserve releases however reduced to $9.5m for the year, down from the 2018 figure of $115m. As soon as we have the syndicate 2017 Account results and updated forecasts we will publish these.
The full report can be accessed here