Beazley PLC Trading Statement for Q1 2024
Beazley PLC issued a positive Trading Statement covering the first quarter of 2024 earlier in the week.
Please click here for the full Statement on Beazley's website.
Main points:
- Insurance premiums up 7% on 2023 Q1 levels
- Premium rates on renewals up by 1% compared to the 2023 Q1 increase of 10%
- Low 80s combined ratio expected for the full year
The highest increases in renewal rates was in the area of property risks which experienced rate increases of 7%: "We continue to see exciting opportunities for Property Risks as business increasingly moves into the E&S market. We are well placed to take advantage of this as demonstrated by 26% growth in the first quarter."
Cyber Risks income dropped by 10% and rates were down 5%: "In Cyber Risks, the reduction in insurance written premium shown in the first quarter is predominantly driven by different premium recognition patterns as a result of us using more distribution partnerships. We remain confident in the short and long term growth opportunities in this class and that underlying rates which, despite the continued softening, remain adequate. We are expecting moderate growth in 2024."
Specialty Risks premium income grew by 6% and rates were almost flat at +1%, as explained here: "In Specialty Risks the D&O market remains very competitive and we remain focussed on robust underwriting discipline and cycle management. This includes taking opportunities in smaller, niche areas within the division which is reflected in the moderate growth seen in the first three months of the year."
In conclusion, this reads positively as a start to 2024, with total premium rising "high single digits" and claims (including the Baltimore Bridge event) being within budgets. Clearly rates in some areas are not increasing at the same level as last year but risk-adjusted returns remain very attractive, particularly in property; and with Beazley's expectation of a low 80s combined ratio, a good outcome for the 2024 year seems more than likely.