Specialist insurer Beazley is celebrating a “better than expected” set of results as the firm edged past forecasts and bumped up its pay-out.
Its combined ratio of 90% - the same as at the end of June 2016 – helped drive a 6% increase in profits for the six month period ending on June 30 as it totalled US$158.7 million – up from US$150.2 million during the same period last year. Its dividend per share climbed 6%.
The increase in profits was helped, in part, by a climb in its gross written premiums – jumping by 2% to US$1,149.3 million. However, at US$83.4 million prior-year reserve releases represented a jump from the 2016 number of US$77.4 million.
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Overall, the success has made chief executive Andrew Horton confident about the immediate future.
“Beazley delivered another good performance in the first half, against a backdrop of continuing competition,” he said. “Our US operations performed strongly and our newly authorised Dublin based insurance company will support our growth plans in Europe, where we see opportunities to distribute our specialty products.”
However, while looking forward the company’s boss was also somewhat cautious – highlighting current conditions in the market are “not conducive to growth”. He said that the underwriter is, however, able to remain profitable and could possibly secure mid-single digit growth.
“We will not sacrifice profitability for growth, which means that we will continue to walk away from underpriced business,” he added. “We will also continue to invest in the skills and infrastructure needed to succeed in any rating environment.”
