Beazley reported its trading results for the nine months ending September 30, 2024, indicating steady growth in insurance written premiums and increased investment returns driven by favourable financial markets.
Insurance written premiums reached US$4.6 billion, a 7% increase from US$4.3 billion during the same period in 2023. Net insurance written premiums also rose 7%, totalling US$3.8 billion. Investment and cash holdings grew to US$11.4 billion, up 15% from US$10 billion in 2023, and the year-to-date investment return stood at 4.7%, a notable increase from 2.1% in the previous year.
Within the business divisions, the cyber risks segment saw a 6% increase in written premiums, totalling US$924 million. The digital division grew 12% to US$190 million, though MAP Risks saw a 5% decline to US$719 million, partly due to a restructuring at the start of 2024 that increased reliance on third-party capital for managed risks.
Property risks was a key growth area, with premiums up 24% to US$1.4 billion, while Specialty Risks saw a slight decrease of 1%, ending the period at US$1.4 billion.
In cyber risks, competition in Europe and an uptick in ransomware claim severity have not altered the group’s outlook for 2024. The MAP risks division, although reduced at the group level due to capital restructuring, continues to grow on a managed basis. Property risks met expectations, bolstered by steady business inflow into the excess and surplus (E&S) market.
The specialty risks division, facing excess capacity and competitive pricing, remains committed to disciplined underwriting, with modest growth expected by year-end.
The group’s exposure to recent natural catastrophe events, including hurricanes Helene and Milton, is projected to result in losses between US$125 million and US$175 million net of reinsurance. Factoring in these events, the group maintains its combined operating ratio guidance of around 80% for the full year, assuming average catastrophe experience for the remainder of the year.
Beazley aims to keep its Solvency II ratio above 170% and will continue to assess capital needs based on growth opportunities, market conditions, and shareholder returns. The group’s share buyback programme, launched in 2024, is part of its strategy to return excess capital to shareholders, it said. A year-end review will determine the level of any potential special distributions.
The group’s investment portfolio generated a return of US$513 million, or 4.7%, for the nine months ending September 30, 2024. The portfolio’s performance benefited from increased equity and high-yield credit exposures. Equity holdings gained over 20% during this period, while fixed income investments with an average yield of 4.3% are expected to support continued investment returns.
Chief executive officer Adrian Cox (pictured above) commented on Beazley’s performance, noting disciplined underwriting and risk selection as key factors in navigating a challenging claims environment.
“Despite an active hurricane season and a global cyber event, we expect to deliver an undiscounted combined ratio of around 80% for the full year, consistent with our guidance at our interim results in August,” he said.
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