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Nov 05, 2021

Beazley plc Q3 2021 Trading Statement

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Beazley's Trading Statement available here in full contained the following key points:

  • Gross written premiums increased by 29% to US$3,271m year on year
  • Premium rates across the portfolio increased by 23%, ahead of expectations
  • Net estimated losses from Q3 2021 events of US$125m.

The table below shows the performance to the end of September 2021 by business division :

Gross premiums written

30 September 2021

Gross premiums written

30 September 2020

% increase/ (decrease)

Year to date Rate change

$m

$m

%

%

Cyber & Executive Risk

991

686

44%

48%

Marine

283

256

11%

9%

Market Facilities

145

96

51%

15%

Political, Accident & Contingency

231

205

13%

6%

Property

435

354

23%

10%

Reinsurance

207

192

8%

13%

Specialty Lines

979

745

31%

15%

OVERALL

3,271

2,534

29%

23%

Rates

"Gross written premiums are higher than expected. While we have seen rates increase across all divisions, the main drivers of the premium growth are Cyber & Executive Risk and our Specialty Lines divisions.

"Rates within the Cyber & Executive Risk division are up 48%, driven predominantly by Cyber where the rates continue to exceed expectations.

"In Specialty Lines, we have benefited from the continued hard market with particularly good rate increases within International Financial Lines.

"The Marine, Property and Reinsurance divisions continue to perform broadly as expected with respect to both growth and pricing.

"The contingency market remains in a relative state of flux as a result of COVID-19 and growth is slightly below expectations within our PAC division. We expect to see a more predictable environment by early 2022.

Claims update

Net estimated losses from Q3 2021 events of US$125m.

The frequency of ransomware claims is on a downward trajectory.

"Total natural catastrophes this year have been in excess of the relevant catastrophe margins held within our reserves. The full year combined ratio is now expected to be mid 90's assuming claims experience is as expected for the remainder of 2021."

Please read the full Trading Statement for further information on investment performance, the new ESG syndicate, and other business developments.