Beazley plc trading statement for Q1 2021

Beazley released a positive Trading Statement to the LSE this morning, available in full here, with news and data for the first quarter of 2021, ending 31 March.

Key highlights

• Gross Written Premium increased by 16% to US$971m for the quarter;
• Premium rates increased by 16% which was ahead of expectations(+8% at same time last year);
• Covid-19 estimates unchanged at US$340m net of reinsurance recoveries

The biggest income unit is Specialty Lines which saw premium up by 24% and rates up by 14%. This builds upon the 15% rate increase reported in the year-end results statement.

The biggest rate increases were seen in the Cyber and Executive Risk unit where they rose 32%. Mention is made in the TS that Beazley has been re-underwriting this book of business following increasing ransomware claims.

Claims roundup:

The February winter freeze and storms such as Uri are largely responsible for the US$70m of cat losses in this first quarter.

The Covid-19 estimate remains unchanged at US$340m; as mentioned in the 31/12/2020 results statement, around a further US$50m might have to be added if normality does not return in the second half of the year.

The Ever Given Suez incident in the Suez Canal is negligible.

Comment

This update for the first quarter 2021 reads very solidly and continues the encouraging position revealed in the year-end results for the Group.