It’s fair to say that 2019 was, generally, a successful one for Beazley Group – the specialist insurer reporting a surge in profits and premiums.
In its results announcement revealed today, the company reported profit before tax of US$267.7 million (around NZ$413.8 million) – a leap from last year’s US$76.4 million (around NZ$118.1 million). Its gross written premiums (GWP) also climbed by 15% from US$2,615.3 million to an eye-catching US$3,003.9 million.
There was a caveat to its success, however – its combined ratio stood at 100% for the year, compared to 98% one year earlier.
Speaking about the results, CEO Andrew Horton highlighted that three of the firm’s six divisions had enjoyed double digit growth. As for the rise in the company’s combined ratio, he made it clear where the blame lies.
“An adverse claims experience across several lines of business, leading to reduced prior year reserve releases, meant that our combined ratio rose to 100% for 2019,” he said. “Despite this, we are optimistic that the remedial action that we have been taking across several lines of business in recent years, alongside the expected continued premium rate increase, will favour us as we move into 2020.”
