Specialist insurer Beazley Plc has today announced its quarterly results for the period ended March 31, 2022, and, according to CEO Adrian Cox, “the year has started well”.
Q1 2022 saw its gross written premiums (GWP) spike 27% to $1,229 million (about £998.44 million), up from $971 million in Q1 2021, while premium rates on renewable business rose a sizeable 17%. In its trading statement, Beazley noted that it had achieved premium growth in most of its divisions, which was driven by a combination of rate increases and adding exposure in several areas.
Its performance in Q1 2022 is broken down by business division in the table below.
|
|
GWP 31 March 2022 |
GWP 31 March 2021
|
% increase/ (decrease)
|
Year to date Rate change |
|
|
$m |
$m |
% |
% |
|
Cyber & Executive Risk |
342 |
232 |
47% |
49% |
|
Digital* |
47 |
32 |
47% |
19% |
|
Marine |
94 |
100 |
(6%) |
5% |
|
Market Facilities |
71 |
42 |
69% |
6% |
|
Political, Accident & Contingency |
106 |
84 |
26% |
3% |
|
Property |
130 |
113 |
15% |
6% |
|
Reinsurance |
93 |
97 |
(4%) |
13% |
|
Specialty Lines |
346 |
271 |
28% |
5% |
|
OVERALL |
1,229 |
971 |
27% |
17% |
Beazley highlighted that, from Q2 2022, its results will be presented on the basis of its new divisional structure - Cyber Risks, Specialty Risks which combines Specialty Lines with Executive Risk, MAP Risks which brings together its Political, Accident & Contingency division with Marine, Property Risks which now includes its primary Property book and Property Reinsurance division, and Digital.
The divisions will be interconnected and able to operate at scale, Beazley said, and will look to generate efficiencies and enable innovation to benefit the insurer’s clients and brokers.
Claims experience during Q1 2022 was better than expected, the insurer stated, as it saw further improvements in ransomware frequency following continued underwriting actions.
Russia’s invasion of Ukraine led to a small number of claims to date and Beazley has reviewed all areas of its underwriting portfolio to identify classes that may be directly impacted. Relevant areas of exposure are political violence, trade credit, aviation and marine – and its initial estimate of exposure to the Russia-Ukraine conflict, excluding aviation, is approximately $50 million net of reinsurance.
Q1 2022 saw Beazley dip to an investment loss of $92 million, a far cry from its gain of $27 million in Q1 2021. Meanwhile, its combined ratio guidance remains around 90% for full year 2022.
Commenting on the results for the quarter, Cox highlighted its GWP increase of 27% and that its growth is slightly ahead of its expectations across all divisions. This was largely driven by Cyber, he said, which saw rates double in Q1 2022. While the overall rating environment remains positive, he added, the rate change across parts of its business is beginning to moderate.
“The impacts of the war in Ukraine go far beyond those which are financial, and our thoughts are with everyone who is impacted by this terrible conflict,” Cox said. “We continue to monitor the situation closely and have assessed our potential exposures across our business. To date we have seen a small number of claims with respect to the conflict and we remain confident in our combined ratio guidance of around 90% for the full year.”
