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Jul 27, 2021

Beazley plc publishes group results and trading statement as at 30 June 2021

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Beazley published the group's interim results for the 2020 half year on 23 July (updated 26 July) to the LSE.

The full Press Release is available here and the presentation slides to the analysts are available here.

Some headline financial data as follows:

  • Gross Written Premium increase year on year of 22% to US$2.035bn
  • Profit before tax $167m - at June 2020 a loss of $14m
  • Combined ratio of 94% - at June 2020 was 107%
  • Rate increase on renewal portfolio of 20% - at June 2020 +11%
  • Prior year reserve releases $95.7m

The following extracts may be relevant and interesting reading to Members as illustrative of current market condition and outlook.

Premiums and rates:

  • Marine rate increases averaging 10% and premium increase of 10%
  • Cyber & Executive Risk rate increases of 44% and premium increase of 31%
  • Specialty average rate increases of 13% and premium increase of 29%
  • Market Facilities (Syndicate 5623) rate increases 12% and premium increase 46%
  • Property rate increases of around 10% and premiums increasing 18%
  • Reinsurance average rate increases up 12% with premium growth of 7% - slight decline following reduced Florida demand

Click here for an extract of the analysts' presentation slides showing the rate increases.


Claims:

  • Covid-19 estimate - unchanged at $340m (net) with a further provision of a potential $50m (net) for the second half of the year if not seeing "normality".
  • General - recession proofing has been integral to the business for some time and Beazley is confident that they are not significantly exposed to recession-related claims. US social inflation, however, is expected to return and affect their US liability book.

Capital position

"We remain well capitalised and strongly positioned to deploy our capital in areas where we can make the most of hard market opportunities. We estimate our capital surplus to be 23% at 31 December 2021."

Beazley's shares climbed on the news which exceeded analysts' expectations.