Beazley plc has reported a record profit before tax of $1.42 billion for the year ended December 31, 2024, representing a 13% increase from the $1.25 billion recorded in 2023. The specialist insurer also announced a $500 million share buyback programme, alongside strong growth in written premiums.
Insurance written premiums increased by 10% to $6.16 billion, up from $5.60 billion in 2023, while net insurance written premiums rose to $5.15 billion from $4.70 billion the previous year. Despite the positive financial results, Beazley’s undiscounted combined ratio deteriorated to 79%, compared to 74% in 2023, while the discounted combined ratio stood at 75%, down from 71%. Return on equity also declined to 27% from 30%.
Beazley noted an initial estimate of $80 million in claims related to the Californian wildfires.
“Our record profit of $1.4 billion, along with a 79% undiscounted combined ratio and strong premium growth is a testament to the strength of our expertise. I am delighted with what our company has achieved amidst a challenging claims environment, including an active hurricane season,” said CEO Adrian Cox.
“This robust performance enables a share buyback of $500 million as well as an ordinary dividend rebase to 25p, which is a 76% increase. We remain well capitalised to take advantage of growth opportunities in an evolving market and sustain our strong financial performance over the long term.”
Looking ahead, the company has issued mid-single-digit gross insurance written premium growth guidance for 2025, with an expected undiscounted combined ratio in the mid-80s range.
Beazley plc (LON:BEZ) shares reached a new 52-week high during mid-day trading on Monday. The stock traded as high as GBX 882.50 (US$11.21) and last traded at GBX 879.50 (US$11.18), with a volume of 2,084,237 shares. The stock had previously closed at GBX 876.50 (US$11.14).
Beazley shares were up 1.9%, with the stock maintaining a fifty-day moving average price of GBX 827.80 and a 200-day moving average price of GBX 792.39. The company has a market capitalisation of £6.87 billion, a price-to-earnings ratio of 5.59, a price-to-earnings-growth ratio of 1.57, and a beta of 0.68.
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