REG - Beazley PLC - Beazley plc results for period ended 30 June 2025
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RNS Number : 0729V Beazley PLC 13 August 2025
Disciplined underwriting to deliver strong profit of $502.5m in first half of
2025
London, 13 August 2025
Beazley plc results for period ended 30 June 2025
• Profit before tax $502.5m (2024HY: $728.9m)
• Insurance written premiums increased to $3,187.1m (2024HY:
$3,123.3m)
• Undiscounted combined ratio of 84.9% (2024HY: 80.7%)
• Return on equity (annualised) of 18.2% (2024HY: 28.4%)
• FY guidance of undiscounted COR remains at mid-80s
• FY premium growth guidance updated to low-to-mid single digits
Period ended Period ended %
30 June 2025 30 June 2024 movement
Insurance Written Premiums ($m) 3,187.1 3,123.3 2 %
Net Insurance Written Premiums ($m) 2,600.6 2,586.5 1 %
Insurance Service Result ($m) 493.7 558.0 (12) %
Profit before tax ($m) 502.5 728.9 (31) %
Earnings per share (pence) 52.5 68.7 (24) %
Net assets per share (pence) 560.0 504.7 11 %
Net tangible assets per share (pence) 536.1 483.1 11 %
Period ended
30 June 2024
%
movement
Insurance Written Premiums ($m)
3,187.1
3,123.3
2 %
Net Insurance Written Premiums ($m)
2,600.6
2,586.5
1 %
Insurance Service Result ($m)
493.7
558.0
(12) %
Profit before tax ($m)
502.5
728.9
(31) %
Earnings per share (pence)
52.5
68.7
(24) %
Net assets per share (pence)
560.0
504.7
11 %
Net tangible assets per share (pence)
536.1
483.1
11 %
Adrian Cox, CEO of Beazley, said:
"We are very proud of our overall performance. Growth of 2.0% reflects our
disciplined approach and is fully aligned with our strategy of prioritising
rate adequacy and long-term profitability over short-term income. This
commitment to delivering strong profit through the market cycle is
demonstrated by our 84.9% undiscounted combined ratio.
Our depth of experience in operating within a cyclical environment means we
know when to take risk, and when to pull back. This phase is no exception. As
ever we are focused on accessing the right opportunities, backed by the
strength of our people, platforms and product set, all of which underpin our
ability to adapt with confidence during periods of elevated uncertainty."
A webcast will be held at 09:00am BST on Wednesday, 13 August 2025.
Webcast Link:
https://brrmedia.news/BEZ_HY25
ENDS
For further information:
Investors and analysts
Sarah Booth
+44 (0) 207 6747582
Media
Sam Whiteley
+44 (0) 207 6747484
Note to editors:
Beazley plc (BEZ.L), is the parent company of specialist insurance businesses
with operations in Europe, North America, Latin America, and Asia. Beazley
manages seven Lloyd's syndicates and, in 2024, underwrote gross premiums
worldwide of $6,164.1million. All Lloyd's syndicates are rated A by A.M. Best.
Beazley's underwriters in the United States focus on writing a range of
specialist insurance products. In the admitted market, coverage is provided by
Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all
50 states and its subsidiary, Beazley America Insurance Company, Inc. In the
surplus lines market, coverage is provided by the Beazley syndicates at
Lloyd's, and from 1 January 2024, also from Beazley Excess and Surplus
Insurance, Inc.
Beazley's European insurance company, Beazley Insurance dac, is regulated by
the Central Bank of Ireland and is A rated by A.M. Best and A+ by Fitch.
Beazley is a market leader in many of its chosen lines, which include
Professional Indemnity, Cyber Liability, Property, Marine, Reinsurance,
Accident and Life, and Political Risks and Contingency business.
For more information please go to: www.beazley.com
Interim results statement
Beazley delivered a strong profit before tax of $502.5m in the first half
of 2025 (30 June 2024: $728.9m). This performance reflects our continued
ability to navigate complex market conditions with discipline and agility. We
achieved an insurance service result of $493.7m (30 June 2024: $558.0m),
resulting in a discounted combined ratio of 80.3% (30 June 2024: 76.7%) and an
undiscounted combined ratio of 84.9% (30 June 2024: 80.7%). Our investment
team achieved impressive results, generating $308.5m (30 June 2024: $251.7m),
equivalent to an annualised return of 5.4% (30 June 2024: 4.8%). Insurance
written premium growth was 2.0% across our business (30 June 2024: 6.9%). We
are pleased to report an annualised return on equity of 18.2% (30 June 2024:
28.4%).
Expert management of the market cycle
At Beazley, we continue to apply robust underwriting discipline and adapt
dynamically to evolving market conditions across our portfolio. Our
diversified product offering and distribution strategy gives us the
flexibility to remain selective and focused on long-term profitability, even
when pricing conditions are more competitive.
During the prolonged soft market between 2010 and 2018, rate momentum was
limited and market-wide growth opportunities were scarce. Even then, our
approach was one of discipline, choosing not to pursue unprofitable growth.
Instead, we leaned into the future by identifying the opportunity and
investing early in cyber, a class that has since become an increasingly
important and complex area of specialty insurance. That foresight reflects the
same judgement we continue to apply today.
In contrast to the previous softer cycle, there is a fundamental difference
in today's environment; the claims environment is active in respect to both
frequency and severity, and uncertainty is elevated. We have seen climate
related natural catastrophes such as the wildfires in California, alongside
heightened cyber threats including a wave of ransomware attacks which
particularly impacted retailers in the UK and Europe in the first half of
2025. This has been further compounded by the continued rise of social
inflation in North America, which is driving greater complexity and cost
across multiple lines in the specialty insurance sector. In this context, rate
discipline is essential.
We believe this reinforces the value of our approach: staying resolutely
focused on profitability, underpinned by deep underwriting expertise. Our
ability to grow selectively in order to maintain our strong performance,
particularly during more competitive points of the cycle, is reflected in our
Property Risks undiscounted combined ratio of 76.1% in the first half of the
year (30 June 2024: 80.8%). Achieving such a strong result during a half-year
period which had the second highest market-wide losses on record, reinforces
our confidence in the long-term trajectory of the business whilst
demonstrating our expertise and commitment to managing our aggregate in this
increasingly complex area of risk.
Growth in recent years has been exceptionally strong, supported by a
combination of increased exposure and significant rate momentum across many of
our lines. These conditions were dislocated and temporary.
Premium growth in the first half of 2025 was 2.0% (30 June 2024: 6.9%).
Whilst below prior guidance, this is reflective of our deliberate
prioritisation of rate adequacy and disciplined underwriting and this
evolution is entirely consistent with the nature of the insurance cycle. It is
both familiar and something we know how to manage well. Our product selection
strategy and prudence in reserves allows us to maintain the consistency of our
financial performance, irrespective of where we are in the cycle.
With a diversified portfolio of over fifty products across four core
divisions, and wide geographical reach through our platforms in North America
and Europe as well as the global wholesale market via our Lloyd's platform, we
are well-positioned to make strategic choices that support strong long-term
performance and position us well for the future.
Demand for insurance drives long-term opportunity
The world is facing an increasing lack of predictability, including climate
risk, geopolitical uncertainty and cyber threats. However, current insurance
conditions with strong supply and elevated competition means we are in a
softening market. Nevertheless, long-term demand for insurance continues to
grow as businesses seek protection in an ever more complex and fast-paced risk
environment.
Cyber insurance continues to structurally grow as demand is fuelled by visible
evidence of the need for cover against the ever changing cyber threat
environment. The market is not fully mature yet, and although the awareness
has increased and many companies understand the importance of being protected,
there are still a large number of businesses that do not yet have sufficient
cyber security or insurance protection.
We have a strong value proposition with our Full Spectrum offering, helping
organisations to build resilience by integrating proactive cyber security and
intelligence from Beazley Security with "always on" monitoring as well as
traditional insurance indemnification and claims management. We see a huge
potential to leverage this capability to support the long-term structural
growth opportunities.
January's wildfires in California or the flooding in Texas in July exemplify
the impact of natural catastrophes. We believe that most risks are insurable
in the commercial market at a sustainable price and with clear terms and
conditions. We continue to invest in our property underwriting, claims and
climate risk management infrastructure to support our clients. The addition
of parametric expertise offers the potential of new solutions to underwriting
complex property risks.
Parametric insurance is an important tool utilised by Humanity Insured, of
which we are a founding partner. Its role is to help communities in the
developing world that are on the frontline of climate change to access
insurance cover to protect their livelihoods. It is a strong example of how
innovation in insurance can deliver social good.
Innovation is always at the heart of what we do and by building out specialist
products that offer a protective barrier for gaps in insurance cover, we are
bringing new cover to the market and offering solutions to an increasingly
complex risk landscape.
The energy transition is under constant development and is bringing many
opportunities driven by innovation, and we continue to lean in, building out
our Renewables team, with new underwriters having joined in Europe in the
first half of 2025. We are looking to the future and were proud co-hosts of
the Sustainable Markets Initiative at Lloyd's in June to consider commercial
implementation of fusion energy projects, including the role insurance can
play in the development of this exciting technology.
Underwriting performance
Cyber Risks
Growth in Europe was an ongoing focus as this area of the cyber book provided
the best risk reward dynamics in the first half of the year. We have been
anticipating a stabilisation of the rate environment given the continued
increase in frequency and severity of claims within the wider market and
began to see early signs of this at 1 July 2025 cyber renewals. Leveraging
the expertise of Beazley Security and our Full Spectrum Cyber capabilities to
protect our clients, coupled with our strong capital position gives us the
ability to react quickly to the evolving conditions in the cyber insurance
market.
Digital Risks
Our specialist small business offering, focused on cyber and technology
business, predominantly located in North America, is experiencing the same
rating dynamics as our wider cyber business. The digitisation of our business
is evolving, and our focus is to ensure that we develop a technology stack
that can be rolled out across our products, coupled with the ability to
increase automation within each business area to improve efficiency for our
brokers and clients.
Marine, Accident and Political (MAP) Risks
We see continued strong demand for our products in MAP Risks to meet the
needs of businesses as they manage this challenging risk landscape. Strategic
investment in our Renewables team, including the recent appointment
of underwriting talent in Madrid, to develop our onshore capabilities,
positions us well for future growth.
We are seeing positive growth in our contingency business with demand for
events cover continuing to increase. Ongoing global uncertainty means we are
also seeing an uptick in demand for our specialist terrorism
insurance solutions.
Property Risks
We remain focused on disciplined underwriting in property, where market
conditions remain complex. Despite a high loss environment in the first half
of the year, our profitability has been supported by targeted underwriting,
pricing, and exposure management controls across perils.
We've continued to refine our underwriting approach, concentrating on complex
risks where we see strong margins. Enhanced analytics, underwriting discipline
and deploying aggregate controls to better manage catastrophe risk have
enabled us to control our exposure more effectively. In recent years, this has
included increasing attachment points to reduce exposure to severe connective
storm events and reducing our appetite in high-risk regions such as
California.
As part of our commitment to managing tail risk and safeguarding the balance
sheet, we secured additional property excess of loss reinsurance during the
first half of the year. This reflects the fact that our exposure is becoming
increasingly complex and volatile, and as it grows, so too does the need for
robust reinsurance protection.
As cumulative rates peaked at the end of 2024, a combination of benign
attritional experience and growing market capacity has led to rate pressure,
with decreases in some areas exceeding broader market trends.
Even in these changing market conditions, our long-term investment into
property continues to deliver. Our actions to consistently strengthen and
improve our property underwriting have not only sustained our earnings but
also positioned us well in a market where capacity is increasing and rate
pressure is emerging.
We remain excited about the long term opportunities in property and have
further added to our team with new leadership in North America and Europe as
well as the previously mentioned build-out of specialist parametric
capabilities.
Specialty Risks
Boardrooms remained at the forefront of litigation in the first half of the
year, as the business impacts of cyber attacks, AI adoption, and other
emerging challenges demanded careful management and communication. We remain
committed to supporting our brokers and clients with specialist Director &
Officers (D&O) solutions, even as competitive market conditions persist.
Beyond our core specialist liability offerings, our niche solutions, such as
Safeguard and environmental liability, continue to experience strong,
demand-led growth, helping clients bridge coverage gaps in new and evolving
risk areas.
We continue to carefully monitor the impact of social inflation, remaining
cautious, prioritising rate adequacy, and staying alert to emerging litigation
trends.
Reserving
Beazley has a consistent reserving philosophy, with initial reserves being set
to include a risk adjustment that may be released over time as and when any
uncertainty reduces. We maintain a preferred confidence level range of between
the 80th and 90th percentile. This metric gives an indication about where the
reserves sit compared with the best estimate and the capital requirement.
Prior year reserve development, in aggregate, has not materially impacted the
half-year results.
As at 30 June 2025, our reserve confidence level was at the 85th percentile
(30 June 2024: 88th percentile; 31 December 2024: 84th percentile), which is
in the middle of our preferred confidence level range.
Insurance written premiums / Net insurance written premiums
6 months ended 30 June 2025 6 months ended 30 June 2024
Insurance written premiums Net insurance written premiums Insurance written premiums Net insurance written premiums
$m $m $m $m
Cyber Risks 544.3 422.4 577.8 454.3
Digital 118.2 108.1 126.8 111.9
MAP Risks 552.1 478.4 506.9 435.3
Property Risks 1,025.7 731.4 1,008.4 784.8
Specialty Risks 946.8 860.3 903.4 800.2
Total 3,187.1 2,600.6 3,123.3 2,586.5
Rate change
6 months ended 30 June 2025 6 months ended 30 June 2024
Cyber Risks (6.8) % (6.5) %
Digital (3.6) % (2.2) %
MAP Risks (1.3) % 2.0 %
Property Risks (7.0) % 3.1 %
Specialty Risks 0.7 % 1.0 %
Total (3.9) % 0.0 %
(6.5) %
Digital
(3.6) %
(2.2) %
MAP Risks
(1.3) %
2.0 %
Property Risks
(7.0) %
3.1 %
Specialty Risks
0.7 %
1.0 %
Total
(3.9) %
0.0 %
Expenses
The expense ratio, which under IFRS 17 includes only expenses directly
attributed to insurance activities, increased to 33.6% for the first half of
the year (30 June 2024: 31.6%). Non-directly attributable expenses which sit
outside of the insurance result were $224.7m (30 June 2024: $160.4m). Total
expenses for the first six months of the year were $1,067.7m (30 June 2024:
$918.0m).
There have been increased expenses in the first half of the year, primarily
due to higher long-term incentive costs. The Company's strong performance
over the past three years has led to an increase in performance related
reward, with the associated expense recognised earlier in the year compared
to the prior period. In addition, we remain committed to driving scalability
and long-term efficiencies, continuing to invest in our technology and
data capabilities.
Investments
The investment portfolio delivered a return of $308.5m, or 2.7% in the first
half of 2025 (30 June 2024: $251.7m, or 2.4% ). The elevated starting point
for fixed income yields supported higher portfolio income, while a decline in
US treasury yields during the period contributed positively to mark to market
performance.
Our allocations to investment-grade and high-yield credit added value, and we
increased exposure to collateralised loan obligations to take advantage of
attractive credit spreads, which also generated positive returns.
The capital growth portfolio performed well, returning 2.0%, driven by
increased exposure to equities and hedge funds. While we reduced exposure
during a period of heightened macroeconomic and geopolitical risk,
we subsequently reintroduced exposure as conditions evolved.
The yield of our fixed income investments is 4.1% with a duration of 1.6
years. We see opportunities to enhance returns by increasing exposure to
investment-grade credit focused on short-dated, high-quality and liquid
securities. We remain focused on matching liability risk exposures with
high-quality fixed income, and taking advantage where we see opportunities to
generate incremental returns across the broad investment universe in the
capital growth portfolio.
Investment by asset type
The table below details the breakdown of our portfolio by asset class:
30 June 30 June 30 June 30 June
2025 2025 2024 2024
$m % $m %
Cash and cash equivalents 985.9 8.6 945.6 8.9
Fixed and floating rate debt securities
- Government 4,558.6 39.5 4,166.6 39.0
- Corporate bonds
- Investment-grade 3,416.7 29.6 3,589.9 33.6
- High-yield 664.8 5.8 632.4 5.9
- Securitised
- Collateralised loan obligations 536.5 4.7 - -
Syndicate loans 22.5 0.2 28.8 0.3
Derivative financial assets 9.6 0.1 9.6 0.1
Core portfolio 10,194.6 88.5 9,372.9 87.8
Equity funds 397.8 3.5 432.2 4.1
Hedge funds 761.6 6.6 645.2 6.1
Illiquid credit assets 166.9 1.4 212.6 2.0
Capital growth assets 1,326.3 11.5 1,290.0 12.2
Investment portfolio total 11,520.9 100.0 10,662.9 100.0
30 June
2025
30 June
2024
30 June
2024
$m
%
$m
%
Cash and cash equivalents
985.9
8.6
945.6
8.9
Fixed and floating rate debt securities
- Government
4,558.6
39.5
4,166.6
39.0
- Corporate bonds
- Investment-grade
3,416.7
29.6
3,589.9
33.6
- High-yield
664.8
5.8
632.4
5.9
- Securitised
- Collateralised loan obligations
536.5
4.7
-
-
Syndicate loans
22.5
0.2
28.8
0.3
Derivative financial assets
9.6
0.1
9.6
0.1
Core portfolio
10,194.6
88.5
9,372.9
87.8
Equity funds
397.8
3.5
432.2
4.1
Hedge funds
761.6
6.6
645.2
6.1
Illiquid credit assets
166.9
1.4
212.6
2.0
Capital growth assets
1,326.3
11.5
1,290.0
12.2
Investment portfolio total
11,520.9
100.0
10,662.9
100.0
Investment performance
30 June 30 June 30 June 30 June
2025 2025 2024 2024
return return
$m % $m %
Core portfolio 282.0 2.8 % 171.9 1.8 %
Capital growth assets 26.5 2.0 % 79.8 6.7 %
Overall return 308.5 2.7 % 251.7 2.4 %
30 June
2025
return
30 June
2024
30 June
2024
return
$m
%
$m
%
Core portfolio
282.0
2.8 %
171.9
1.8 %
Capital growth assets
26.5
2.0 %
79.8
6.7 %
Overall return
308.5
2.7 %
251.7
2.4 %
Interest rate sensitivity
The Group has conducted a sensitivity analysis of its financial assets
(specifically debt and fixed income holdings) and its (re)insurance contract
liabilities (being the net of reinsurance contract assets and insurance
contract liabilities) to estimate the immediate impact of the movement in
interest rates on profit after tax/equity for the period:
Financial assets
30 June 31 December 2024
2025
$m $m
Shift in yield (basis points)
150 basis point increase (183.4) (181.3)
100 basis point increase (122.3) (120.9)
50 basis point increase (61.1) (60.4)
50 basis point decrease 61.1 60.4
100 basis point decrease 122.3 120.9
150 basis point decrease 183.4 181.3
31 December 2024
$m
$m
Shift in yield (basis points)
150 basis point increase
(183.4)
(181.3)
100 basis point increase
(122.3)
(120.9)
50 basis point increase
(61.1)
(60.4)
50 basis point decrease
61.1
60.4
100 basis point decrease
122.3
120.9
150 basis point decrease
183.4
181.3
Net insurance contract liabilities
30 June 31 December 2024
2025
$m $m
Shift in yield (basis points)
150 basis point increase 147.4 123.4
100 basis point increase 99.5 83.2
50 basis point increase 50.3 42.1
50 basis point decrease (51.6) (43.2)
100 basis point decrease (104.6) (87.5)
150 basis point decrease (158.9) (133.0)
31 December 2024
$m
$m
Shift in yield (basis points)
150 basis point increase
147.4
123.4
100 basis point increase
99.5
83.2
50 basis point increase
50.3
42.1
50 basis point decrease
(51.6)
(43.2)
100 basis point decrease
(104.6)
(87.5)
150 basis point decrease
(158.9)
(133.0)
Capital
When deciding on the appropriate level of capital, we consider several
criteria: firstly, we aim to maintain a solvency ratio in excess of 170% of
solvency capital requirement (SCR). To this minimum requirement, we add
capital to absorb volatility to ensure financial resilience should a 1-in-250
event occur as well as assessing the impact of interest rate movements.
Finally, we consider the opportunities for growth, which encompass the
business plan for the following year as well as the medium-term opportunities
which may arise in the subsequent one to two years. Should any surplus capital
remain after taking these factors into account, we will return this to our
shareholders.
As at 31 December 2024, our Solvency II coverage ratio post-dividend and share
buyback was 264%. Our capital requirement is calculated annually at each year
end. The half-year position represents the additional own funds, generated in
the first half of the year, to produce an estimated Solvency II ratio of 287%
at 30 June 2025. This figure includes the total share buyback completed
to date as well as the remaining amount of the share buyback of $500.0m
which we announced on 4 March. As at 30 June, we have bought back $235.3m
worth of shares through this programme.
30 June 31 December
2025 2024
Estimate Actual
$m $m
Eligible Tier 1 capital after foreseeable distributions 4,714.1 4,291.3
Eligible Tier 2 capital 558.4 564.9
Total Solvency II eligible own funds after foreseeable distributions 5,272.5 4,856.2
Capital requirement 1,837.1 1,837.1
Group Solvency II ratio 287 % 264 %
31 December
2024
Actual
$m
$m
Eligible Tier 1 capital after foreseeable distributions
4,714.1
4,291.3
Eligible Tier 2 capital
558.4
564.9
Total Solvency II eligible own funds after foreseeable distributions
5,272.5
4,856.2
Capital requirement
1,837.1
1,837.1
Group Solvency II ratio
287 %
264 %
Scenario sensitivity analysis
The table below shows the impact on the Group's estimated Solvency II ratio in
the event of the following scenarios as at 30 June 2025.
Impact on Solvency II ratio
Cyber 1-in-250 scenario* (32) %
Nat-Cat 1-in-250 combined scenario (27) %
50 bps decrease in interest rates ** (12) %
Nat-Cat 1-in-250 combined scenario
(27) %
50 bps decrease in interest rates **
(12) %
* Based on cyber probabilistic model
** This considers the impact on the SCR in isolation to the impact on eligible
own funds
At the end of the year, our capital requirements will be recalculated to
reflect the business plan for 2026 as well as own fund generation in the
second half of the year. When considered together, these factors are expected
to increase our capital requirements, which will result in a decreased
Solvency II ratio at 31 December 2025 when compared with 30 June 2025.
We are committed to deploying our capital in support of generating the best
return for our shareholders. Where organic growth opportunities are limited,
we explore other ways to put our capital to work which enhance and support
long term value and supports structural growth.
Outlook
We are ambitious and energised about the six months ahead, and whilst reducing
our growth guidance to low-to-mid single digits, reflecting current market
conditions, we are pleased to maintain our undiscounted combined ratio
guidance of mid-80s for the full year.
The first half of 2025 confirms that geopolitical uncertainty remains,
technology is transforming business and the effects of climate change are ever
present, all of which are creating new risks and decreasing predictability.
Specialty insurance companies have an important contribution to make during
this time of transition and change and our focus remains on how we can support
growth by utilising our powerful expertise, managing the market cycle as
pricing conditions normalise.
Just as our approach to underwriting needs to evolve with the external
environment, we want to ensure that our business model has the flexibility to
adapt to a changing risk environment. We are therefore looking at new ways
to enhance our diversified platform and product set, such as additions to
optimise our platform strategy, or by adding relevant capabilities which
support our diversified product offering. We intend to update the market
further on our plans at our Capital Markets Day in Q4.
Adrian Cox
Group Chief Executive Officer
Condensed consolidated statement of profit or loss for the six months ended 30
June 2025
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Note $m $m $m
Insurance revenue 3 2,933.6 2,730.6 5,678.1
Insurance service expenses 4 (2,196.1) (1,824.9) (3,933.0)
Allocation of reinsurance premium 5 (421.2) (335.3) (764.9)
Amounts recoverable from reinsurers for incurred claims 5 177.4 (12.4) 255.8
Insurance service result 493.7 558.0 1,236.0
Net investment income 6 308.5 251.7 574.4
Net finance (expense)/income from insurance contracts issued 6 (125.2) 25.2 (89.1)
Net finance income from reinsurance contracts held 6 29.4 12.3 33.2
Net insurance and financial result 706.4 847.2 1,754.5
Other income 7 44.1 69.3 106.0
Operating expenses 8 (224.7) (160.4) (388.6)
Foreign exchange losses (2.3) (7.7) (9.1)
Results from operating activities 523.5 748.4 1,462.8
Finance costs 9 (21.0) (19.5) (39.3)
Profit before tax 502.5 728.9 1,423.5
Tax expense 10 (82.2) (157.3) (293.2)
Profit after tax for the period 420.3 571.6 1,130.3
Earnings per share (cents per share):
Basic 11 67.2 86.8 175.1
Diluted 11 65.4 84.8 170.4
Earnings per share (pence per share):
Basic 11 52.5 68.7 137.0
Diluted 11 51.0 67.1 133.3
6 months ended
30 June
Year to
31 December
2025
2024
2024
Note
$m
$m
$m
Insurance revenue
3
2,933.6
2,730.6
5,678.1
Insurance service expenses
4
(2,196.1)
(1,824.9)
(3,933.0)
Allocation of reinsurance premium
5
(421.2)
(335.3)
(764.9)
Amounts recoverable from reinsurers for incurred claims
5
177.4
(12.4)
255.8
Insurance service result
493.7
558.0
1,236.0
Net investment income
6
308.5
251.7
574.4
Net finance (expense)/income from insurance contracts issued
6
(125.2)
25.2
(89.1)
Net finance income from reinsurance contracts held
6
29.4
12.3
33.2
Net insurance and financial result
706.4
847.2
1,754.5
Other income
7
44.1
69.3
106.0
Operating expenses
8
(224.7)
(160.4)
(388.6)
Foreign exchange losses
(2.3)
(7.7)
(9.1)
Results from operating activities
523.5
748.4
1,462.8
Finance costs
9
(21.0)
(19.5)
(39.3)
Profit before tax
502.5
728.9
1,423.5
Tax expense
10
(82.2)
(157.3)
(293.2)
Profit after tax for the period
420.3
571.6
1,130.3
Earnings per share (cents per share):
Basic
11
67.2
86.8
175.1
Diluted
11
65.4
84.8
170.4
Earnings per share (pence per share):
Basic
11
52.5
68.7
137.0
Diluted
11
51.0
67.1
133.3
Condensed consolidated statement of comprehensive income for the six months
ended 30 June 2025
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Profit after tax for the period 420.3 571.6 1,130.3
Items that will never be reclassified to profit or loss:
Loss on remeasurement of retirement benefit obligations - - (0.6)
Tax expense on defined benefit obligation - - (0.2)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation gains 38.9 7.9 1.2
Total other comprehensive income 38.9 7.9 0.4
Total comprehensive income recognised 459.2 579.5 1,130.7
6 months ended
30 June
Year to
31 December
2025
2024
2024
$m
$m
$m
Profit after tax for the period
420.3
571.6
1,130.3
Items that will never be reclassified to profit or loss:
Loss on remeasurement of retirement benefit obligations
-
-
(0.6)
Tax expense on defined benefit obligation
-
-
(0.2)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation gains
38.9
7.9
1.2
Total other comprehensive income
38.9
7.9
0.4
Total comprehensive income recognised
459.2
579.5
1,130.7
Condensed consolidated statement of changes in equity for the six months ended
30 June 2025
Share Share Foreign currency translation reserve Other Retained Total
capital premium reserves earnings
$m $m $m $m $m $m
Balance as at 1 January 2024 46.7 10.6 (104.1) (12.8) 3,941.7 3,882.1
Total comprehensive income - - 7.9 - 571.6 579.5
Dividend paid - - - - (120.5) (120.5)
Share buyback (1.2) - - 1.2 (174.4) (174.4)
Issue of shares 0.1 0.2 - - - 0.3
Equity settled share based payments - - - 12.3 - 12.3
Acquisition of own shares held in trust - - - (2.3) - (2.3)
Tax on share option vesting - - - 2.9 0.7 3.6
Transfer of shares to employees - - - (10.1) 10.1 -
Balance as at 30 June 2024 45.6 10.8 (96.2) (8.8) 4,229.2 4,180.6
Total comprehensive income - - (6.7) - 557.9 551.2
Share buyback (1.2) - - 1.2 (155.6) (155.6)
Issue of shares 0.2 7.1 - - - 7.3
Equity settled share based payments - - - 28.2 - 28.2
Acquisition of own shares held in trust - - - (11.7) - (11.7)
Tax on share option vesting - - - 4.2 2.6 6.8
Transfer of shares to employees - - - (1.3) 1.3 -
Balance as at 31 December 2024 44.6 17.9 (102.9) 11.8 4,635.4 4,606.8
Total comprehensive income - - 38.9 - 420.3 459.2
Dividend paid - - - - (211.0) (211.0)
Share buyback (1.3) - - 1.3 (236.8) (236.8)
Issue of shares 0.2 0.2 - - - 0.4
Equity settled share based - - - 29.7 - 29.7
payments
Tax on share option vesting - - - 4.2 - 4.2
Transfer of shares to employees - - - (18.3) 18.3 -
Balance as at 30 June 2025 43.5 18.1 (64.0) 28.7 4,626.2 4,652.5
Share
premium
Foreign currency translation reserve
Other
reserves
Retained
earnings
Total
$m
$m
$m
$m
$m
$m
Balance as at 1 January 2024
46.7
10.6
(104.1)
(12.8)
3,941.7
3,882.1
Total comprehensive income
-
-
7.9
-
571.6
579.5
Dividend paid
-
-
-
-
(120.5)
(120.5)
Share buyback
(1.2)
-
-
1.2
(174.4)
(174.4)
Issue of shares
0.1
0.2
-
-
-
0.3
Equity settled share based payments
-
-
-
12.3
-
12.3
Acquisition of own shares held in trust
-
-
-
(2.3)
-
(2.3)
Tax on share option vesting
-
-
-
2.9
0.7
3.6
Transfer of shares to employees
-
-
-
(10.1)
10.1
-
Balance as at 30 June 2024
45.6
10.8
(96.2)
(8.8)
4,229.2
4,180.6
Total comprehensive income
-
-
(6.7)
-
557.9
551.2
Share buyback
(1.2)
-
-
1.2
(155.6)
(155.6)
Issue of shares
0.2
7.1
-
-
-
7.3
Equity settled share based payments
-
-
-
28.2
-
28.2
Acquisition of own shares held in trust
-
-
-
(11.7)
-
(11.7)
Tax on share option vesting
-
-
-
4.2
2.6
6.8
Transfer of shares to employees
-
-
-
(1.3)
1.3
-
Balance as at 31 December 2024
44.6
17.9
(102.9)
11.8
4,635.4
4,606.8
Total comprehensive income
-
-
38.9
-
420.3
459.2
Dividend paid
-
-
-
-
(211.0)
(211.0)
Share buyback
(1.3)
-
-
1.3
(236.8)
(236.8)
Issue of shares
0.2
0.2
-
-
-
0.4
Equity settled share based
payments
-
-
-
29.7
-
29.7
Tax on share option vesting
-
-
-
4.2
-
4.2
Transfer of shares to employees
-
-
-
(18.3)
18.3
-
Balance as at 30 June 2025
43.5
18.1
(64.0)
28.7
4,626.2
4,652.5
Condensed consolidated statement of financial position as at 30 June 2025
30 June 30 June 31 December
2025 2024 2024
Note $m $m $m
Intangible assets 199.0 178.4 198.0
Plant and equipment 26.7 21.4 28.9
Right-of-use assets 49.9 55.1 49.8
Deferred tax asset 10 217.9 105.9 191.8
Retirement benefit asset 4.2 4.6 4.0
Insurance contract assets 14 17.4 116.0 20.2
Reinsurance contract assets 14 2,929.4 2,422.7 2,666.6
Financial assets at fair value 13 10,535.0 9,717.3 10,610.6
Other assets 731.2 561.3 681.4
Current tax asset 131.8 35.0 85.6
Cash and cash equivalents 985.9 945.6 882.1
Total assets 15,828.4 14,163.3 15,419.0
Share capital 43.5 45.6 44.6
Share premium 18.1 10.8 17.9
Foreign currency translation reserve (64.0) (96.2) (102.9)
Other reserves 15 28.7 (8.8) 11.8
Retained earnings 4,626.2 4,229.2 4,635.4
Total equity 4,652.5 4,180.6 4,606.8
Deferred tax liability 10 376.9 245.6 387.2
Financial liabilities 13 562.4 554.4 576.0
Lease liabilities 71.1 72.5 66.9
Insurance contract liabilities 14 9,073.5 8,118.7 8,814.3
Reinsurance contract liabilities 14 444.2 389.8 297.1
Current tax liability 14.4 82.4 27.9
Other liabilities 633.4 519.3 642.8
Total liabilities 11,175.9 9,982.7 10,812.2
Total equity and liabilities 15,828.4 14,163.3 15,419.0
30 June
2024
31 December
2024
Note
$m
$m
$m
Intangible assets
199.0
178.4
198.0
Plant and equipment
26.7
21.4
28.9
Right-of-use assets
49.9
55.1
49.8
Deferred tax asset
10
217.9
105.9
191.8
Retirement benefit asset
4.2
4.6
4.0
Insurance contract assets
14
17.4
116.0
20.2
Reinsurance contract assets
14
2,929.4
2,422.7
2,666.6
Financial assets at fair value
13
10,535.0
9,717.3
10,610.6
Other assets
731.2
561.3
681.4
Current tax asset
131.8
35.0
85.6
Cash and cash equivalents
985.9
945.6
882.1
Total assets
15,828.4
14,163.3
15,419.0
Share capital
43.5
45.6
44.6
Share premium
18.1
10.8
17.9
Foreign currency translation reserve
(64.0)
(96.2)
(102.9)
Other reserves
15
28.7
(8.8)
11.8
Retained earnings
4,626.2
4,229.2
4,635.4
Total equity
4,652.5
4,180.6
4,606.8
Deferred tax liability
10
376.9
245.6
387.2
Financial liabilities
13
562.4
554.4
576.0
Lease liabilities
71.1
72.5
66.9
Insurance contract liabilities
14
9,073.5
8,118.7
8,814.3
Reinsurance contract liabilities
14
444.2
389.8
297.1
Current tax liability
14.4
82.4
27.9
Other liabilities
633.4
519.3
642.8
Total liabilities
11,175.9
9,982.7
10,812.2
Total equity and liabilities
15,828.4
14,163.3
15,419.0
Condensed consolidated statement of cash flows for the six months ended 30
June 2025
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Notes $m $m $m
Cash flows from operating activities:
Profit before tax 502.5 728.9 1,423.5
Adjustments for non-cash items:
Interest and dividends receivable on financial assets 6 (182.6) (152.8) (313.2)
Finance costs payable 9 21.0 19.5 39.3
Net fair value gains on financial assets 6 (114.0) (29.1) (227.3)
Other non-cash items(1) (80.2) 15.2 99.2
Changes in operational assets and liabilities:
Increase in net insurance and reinsurance contract liabilities 14 146.3 172.3 627.1
(Decrease)/increase in other liabilities (9.4) (91.2) 32.3
Increase in other assets (49.8) (207.1) (327.2)
Purchase of investments (4,899.9) (4,108.6) (8,598.9)
Proceeds from sale of investments 5,190.3 4,096.5 7,870.0
Repayment of syndicate loan 13 8.2 7.7 7.7
Interest and dividends received on financial assets 6 176.8 147.6 303.6
Tax paid (150.7) (109.6) (301.2)
Net cash inflows from operating activities 558.5 489.3 634.9
Cash flows from investing activities:
Purchase of plant and equipment (3.7) (7.2) (17.8)
Expenditure on software development and other intangible assets (8.2) (17.0) (45.0)
Net cash outflows from investing activities (11.9) (24.2) (62.8)
Cash flows from financing activities:
Acquisition of own shares in trust - (2.3) (14.0)
Principal paid on lease liabilities (3.4) (10.6) (11.8)
Interest paid on lease liabilities 9 (1.4) (1.5) (2.9)
Share buyback 15 (232.2) (171.5) (330.0)
Other finance costs paid 9 (19.6) (18.0) (36.4)
Dividend paid (211.0) (120.5) (120.5)
Net cash outflows from financing activities (467.6) (324.4) (515.6)
Net increase in cash and cash equivalents 79.0 140.7 56.5
Opening cash and cash equivalents 882.1 812.3 812.3
Effect of exchange rate changes on cash and cash equivalents 24.8 (7.4) 13.3
Closing cash and cash equivalents 985.9 945.6 882.1
6 months ended
30 June
2024
Year to
31 December
2024
Notes
$m
$m
$m
Cash flows from operating activities:
Profit before tax
502.5
728.9
1,423.5
Adjustments for non-cash items:
Interest and dividends receivable on financial assets
6
(182.6)
(152.8)
(313.2)
Finance costs payable
9
21.0
19.5
39.3
Net fair value gains on financial assets
6
(114.0)
(29.1)
(227.3)
Other non-cash items(1)
(80.2)
15.2
99.2
Changes in operational assets and liabilities:
Increase in net insurance and reinsurance contract liabilities
14
146.3
172.3
627.1
(Decrease)/increase in other liabilities
(9.4)
(91.2)
32.3
Increase in other assets
(49.8)
(207.1)
(327.2)
Purchase of investments
(4,899.9)
(4,108.6)
(8,598.9)
Proceeds from sale of investments
5,190.3
4,096.5
7,870.0
Repayment of syndicate loan
13
8.2
7.7
7.7
Interest and dividends received on financial assets
6
176.8
147.6
303.6
Tax paid
(150.7)
(109.6)
(301.2)
Net cash inflows from operating activities
558.5
489.3
634.9
Cash flows from investing activities:
Purchase of plant and equipment
(3.7)
(7.2)
(17.8)
Expenditure on software development and other intangible assets
(8.2)
(17.0)
(45.0)
Net cash outflows from investing activities
(11.9)
(24.2)
(62.8)
Cash flows from financing activities:
Acquisition of own shares in trust
-
(2.3)
(14.0)
Principal paid on lease liabilities
(3.4)
(10.6)
(11.8)
Interest paid on lease liabilities
9
(1.4)
(1.5)
(2.9)
Share buyback
15
(232.2)
(171.5)
(330.0)
Other finance costs paid
9
(19.6)
(18.0)
(36.4)
Dividend paid
(211.0)
(120.5)
(120.5)
Net cash outflows from financing activities
(467.6)
(324.4)
(515.6)
Net increase in cash and cash equivalents
79.0
140.7
56.5
Opening cash and cash equivalents
882.1
812.3
812.3
Effect of exchange rate changes on cash and cash equivalents
24.8
(7.4)
13.3
Closing cash and cash equivalents
985.9
945.6
882.1
1 Other non-cash items includes amounts relating to depreciation, amortisation
and foreign exchange differences.
1 Statement of accounting policies
Beazley plc (registered number 09763575) is a public limited company
incorporated in England and Wales. The condensed consolidated interim
financial statements of Beazley plc ("the Group") for the six months ended 30
June 2025 comprise the parent company, its subsidiaries and the Group's
interest in associates. These condensed consolidated interim financial
statements have been prepared in accordance with IAS 34 Interim Financial
Reporting, the UK-adopted International Accounting Standard, and the
Disclosure Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
With the exception of the amended standard outlined below, the accounting
policies and methods of computation applied by management in preparing the
condensed consolidated interim financial statements are the same as those
applied to the consolidated financial statements as at and for the year to 31
December 2024. Note, that whilst the performance of individual business lines
may be seasonal, particularly with respect to exposure to insurance losses,
the Group does not consider its overall result to be impacted by seasonality.
The information in these interim condensed consolidated financial statements
is unaudited and does not constitute annual accounts within the meaning of
Section 434 of the Companies Act 2006. The External Auditor's report on the
Group's Annual Report and Accounts for the year to 31 December 2024 was
unqualified, did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying their report and did not
include a statement under section 498 (2) or (3) of the Companies Act 2006.
The preparation of condensed consolidated interim financial statements
requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets and
liabilities, income and expenses. Actual results may differ from these
estimates. The significant judgements and key sources of estimation
uncertainty were the same as those applied to the consolidated financial
statements as at and for the year to 31 December 2024.
a New and amended standards and interpretations
In these condensed consolidated financial statements, the Group has applied
amendments to International Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB) and endorsed by the UK
Endorsement Board (UKEB) that are mandatorily effective for accounting periods
that begin on or after 1 January 2025. The new effective amendments are:
• Amendments to IAS 21 - Lack of Exchangeability.
This amendment issued by the IASB and endorsed by the UKEB has not had a
material impact on the Group. The Group has not early adopted any other
standard or amendment that has been issued but is not yet effective.
b Principal risks and uncertainties
The Group's principal risks and uncertainties are outlined in the risk
management and compliance section of the Group's Annual Report and Accounts
2024 (pages 76 to 81). These are insurance, market, credit, group, liquidity,
regulatory and legal, operational, and strategic risk. The Group's exposure to
and management of these risks has not changed since the last reporting date.
Additionally, further discussion of climate change risk and how it interacts
with the principal risks and uncertainties is discussed in the Task Force on
Climate-Related Financial Disclosures section of Group's Annual Report and
Accounts 2024 (pages 32 to 61).
c Going concern
The Board has reviewed the Group's current and forecast solvency and liquidity
positions for the 12 months from the date that the financial statements are
authorised for issue. No material uncertainty in relation to going concern has
been identified. In addition, as verified by the most recent regulatory
submission, the Group's capital ratios and its total capital resources are
comfortably in excess of regulatory solvency requirements.
Based on the going concern assessment performed, the Directors have a
reasonable expectation that the Group has adequate resources to continue in
operational existence over a period of 12 months from the date of this report
being authorised for issue, and therefore believe that the Group is well
placed to manage its business risks successfully. Accordingly, the condensed
consolidated financial statements of Beazley plc have been prepared on a going
concern basis.
2 Segmental reporting
The Group's reporting segments and the basis of measurement of its segmental
profit or loss are consistent with those applied in the consolidated financial
statements for the year ended 31 December 2024. Information on the
underwriting performance of each segment in the period has been included
below.
Cyber Risks
Insurance revenue grew by 4.2% year-on-year, supported by sustained insurance
written premium growth throughout 2024. Despite an increasingly complex threat
landscape, Cyber Risks delivered a strong performance, achieving a discounted
combined ratio of 78.8%. Reinsurance premium allocation rose by 99.3%
year-on-year reflecting the earning through of catastrophe cover purchased in
the second half of 2024. The expense ratio also rose, primarily due to an
increase in performance related rewards.
Digital
Digital performed strongly in the first half of the year, delivering a
discounted combined ratio of 64.1%. This result was primarily driven by a
strong claims ratio of 26.2%.
MAP Risks
Insurance revenue has increased by 11.9% year on year, as we continue to see a
strong demand for our product set given the uncertain geopolitical
environment. MAP delivered a combined ratio of 79.3%. Although an increase
compared to 2024, the segment continues to deliver strong profitability
demonstrating the continued rate adequacy.
Property Risks
Property Risks continued to perform well, delivering a combined ratio of 74.2%
despite the impact of Californian wildfires in the first half of the year.
This was driven by an overall reduction of 7.9 percentage points in the
claims ratio year-on-year. The expense ratio rose from 34.7% to 38.1% year on
year, primarily due to an increase in performance related rewards.
Specialty Risks
Insurance revenue grew by 6.5% year on year. We continue to carefully monitor
the impact of social inflation, remaining cautious, prioritising rate
adequacy, and staying alert to emerging litigation trends. The claims ratio
has reduced by 1.8 percentage points compared to 30 June 2024. Offsetting this
benefit was a 1.0 percentage point increase in the expense ratio, leading to a
broadly flat combined ratio year on year.
6 months ended 30 June 2025
Cyber Risks Digital MAP Risks Property Risks Specialty Risks Total
$m $m $m $m $m $m
Insurance revenue 629.1 112.6 506.0 708.2 977.7 2,933.6
Insurance service expenses (404.8) (63.9) (383.7) (473.1) (870.6) (2,196.1)
Current and incurred past service claims (269.4) (26.6) (221.2) (256.1) (582.1) (1,355.4)
Insurance acquisition cash flows amortisation and other directly attributable (135.4) (37.3) (162.5) (217.0) (288.5) (840.7)
expenses
Allocation of reinsurance premium (178.8) (14.0) (32.9) (136.6) (58.9) (421.2)
Amounts recoverable from reinsurers for incurred claims 49.9 0.7 8.5 48.7 69.6 177.4
Current claims recovered and past service movements 50.9 0.8 8.7 49.5 69.8 179.7
Other incurred directly attributable expenses (1.0) (0.1) (0.2) (0.8) (0.2) (2.3)
Insurance service result 95.4 35.4 97.9 147.2 117.8 493.7
Net investment income 56.7 7.9 43.7 61.2 139.0 308.5
Net finance expense from insurance contracts issued (24.4) (1.0) (9.6) (11.2) (79.0) (125.2)
Net finance income/(expense) from reinsurance contracts held 12.1 0.6 (5.4) 1.8 20.3 29.4
Net insurance and financial result 139.8 42.9 126.6 199.0 198.1 706.4
Other income 17.9 1.3 5.7 8.1 11.1 44.1
Other operating expenses (64.0) (7.5) (33.8) (46.6) (72.8) (224.7)
Foreign exchange losses (0.5) - (0.4) (0.5) (0.9) (2.3)
Segment result 93.2 36.7 98.1 160.0 135.5 523.5
Finance costs (21.0)
Profit before tax 502.5
Tax expense (82.2)
Profit after tax 420.3
Claims ratio 48.5% 26.2% 44.9% 36.1% 55.8% 46.7%
Expense ratio 30.3% 37.9% 34.4% 38.1% 31.4% 33.6%
Combined ratio 78.8% 64.1% 79.3% 74.2% 87.2% 80.3%
6 months ended 30 June 2024
Cyber Risks Digital MAP Risks Property Risks Specialty Risks Total
$m $m $m $m $m $m
Insurance revenue 603.6 112.6 452.0 644.3 918.1 2,730.6
Insurance service expenses (394.0) (71.8) (264.9) (369.6) (724.6) (1,824.9)
Current and incurred past service claims (274.9) (28.2) (111.1) (184.6) (470.7) (1,069.5)
Insurance acquisition cash flows amortisation and other directly attributable (119.1) (43.6) (153.8) (185.0) (253.9) (755.4)
expenses
Allocation of reinsurance premium (89.7) (15.2) (37.7) (112.4) (80.3) (335.3)
Amounts recoverable from reinsurers for incurred claims 39.7 2.7 6.6 (48.8) (12.6) (12.4)
Current claims recovered and past service movements 40.5 2.7 7.4 (49.0) (11.8) (10.2)
Other incurred directly attributable expenses (0.8) - (0.8) 0.2 (0.8) (2.2)
Insurance service result 159.6 28.3 156.0 113.5 100.6 558.0
Net investment income 46.5 7.6 29.7 47.1 120.8 251.7
Net finance (expense)/income from insurance contracts issued (4.3) 1.5 5.2 6.4 16.4 25.2
Net finance income/(expense) from reinsurance contracts held 1.9 0.2 0.3 11.2 (1.3) 12.3
Net insurance and financial result 203.7 37.6 191.2 178.2 236.5 847.2
Other income 15.3 2.9 11.5 16.4 23.2 69.3
Other operating expenses (32.7) (14.4) (20.3) (17.4) (75.6) (160.4)
Foreign exchange losses (1.7) (0.3) (1.3) (1.8) (2.6) (7.7)
Segment result 184.6 25.8 181.1 175.4 181.5 748.4
Finance costs (19.5)
Profit before tax 728.9
Tax expense (157.3)
Profit after tax 571.6
Claims ratio 45.6% 26.1% 25.0% 44.0% 57.6% 45.1%
Expense ratio 23.3% 44.8% 37.3% 34.7% 30.4% 31.6%
Combined ratio 68.9% 70.9% 62.3% 78.7% 88.0% 76.7%
Year to 31 December 2024
Cyber Risks Digital MAP Risks Property Risks Specialty Risks Total
$m $m $m $m $m $m
Insurance revenue 1,156.7 234.7 917.4 1,518.1 1,851.2 5,678.1
Insurance service expenses (784.8) (160.0) (716.8) (919.6) (1,351.8) (3,933.0)
Current and incurred past service claims (554.2) (66.0) (410.7) (519.8) (828.6) (2,379.3)
Insurance acquisition cash flows amortisation and other directly attributable (230.6) (94.0) (306.1) (399.8) (523.2) (1,553.7)
expenses
Allocation of reinsurance premium (231.1) (28.5) (81.1) (225.4) (198.8) (764.9)
Amounts recoverable from reinsurers for incurred claims 189.1 6.8 40.0 (22.4) 42.3 255.8
Current claims recovered and past service movements 190.0 6.9 41.2 (21.5) 43.6 260.2
Other incurred directly attributable expenses (0.9) (0.1) (1.2) (0.9) (1.3) (4.4)
Insurance service result 329.9 53.0 159.5 350.7 342.9 1,236.0
Net investment income 108.2 17.7 72.3 112.8 263.4 574.4
Net finance expense from insurance contracts issued (29.6) (1.5) (5.8) (4.5) (47.7) (89.1)
Net finance income from reinsurance contracts held 6.3 - 3.8 10.2 12.9 33.2
Net insurance and financial result 414.8 69.2 229.8 469.2 571.5 1,754.5
Other income 21.6 4.4 17.1 28.3 34.6 106.0
Other operating expenses (79.2) (16.1) (62.8) (103.9) (126.6) (388.6)
Foreign exchange losses (1.8) (0.4) (1.5) (2.4) (3.0) (9.1)
Segment result 355.4 57.1 182.6 391.2 476.5 1,462.8
Finance costs (39.3)
Profit before tax 1,423.5
Tax expense (293.2)
Profit after tax 1,130.3
Claims ratio 39.4% 28.7% 44.2% 41.9% 47.5% 43.1%
Expense ratio 25.0% 45.6% 36.7% 31.0% 31.7% 31.7%
Combined ratio 64.4% 74.3% 80.9% 72.9% 79.2% 74.8%
3 Insurance revenue
Insurance revenue represents the total changes in the liability for remaining
coverage that relate to services for which the Group expects to receive
consideration. This includes the difference between the claims and other
expenses expected at the beginning of the year versus those actually incurred
(per Note 4), after the loss component allocation.
6 months ended 30 June 2025 6 months ended 30 June 2024 Year to 31 December 2024
$m $m $m
Amounts relating to the changes in the liability for remaining coverage:
- Expected incurred claims and other expenses after loss component allocation 1,529.5 1,502.7 3,223.6
- Change in risk adjustment for non-financial risk for the risk expired after 122.1 137.2 271.5
loss component allocation
- Contractual service margin recognised in profit or loss for services 522.2 349.7 807.3
provided
- Other amounts including experience adjustments 218.1 248.0 366.5
Insurance acquisition cash flows recovery 541.7 493.0 1,009.2
Total insurance revenue 2,933.6 2,730.6 5,678.1
4 Insurance service expenses
The table below shows the insurance service expenses recognised on groups of
insurance contracts issued by the Group. These are recognised in the statement
of profit or loss as they are incurred.
6 months ended 30 June 6 months ended 30 June Year to 31 December
2025 2024 2024
$m $m $m
Current and incurred past service claims 1,355.4 1,069.5 2,379.3
Insurance acquisition cash flows amortisation and other directly attributable 840.7 755.4 1,553.7
expenses
Total insurance service expenses 2,196.1 1,824.9 3,933.0
5 Net expenses from reinsurance contracts held
The table below shows the net expenses from reinsurance contracts held,
comprised of the allocation of reinsurance premium and amounts recoverable
from reinsurers for incurred claims.
6 months ended 30 June 6 months ended 30 June Year to 31 December
2025 2024 2024
$m $m $m
Amounts relating to changes in the remaining coverage:
- Expected claims and other expenses recovery (263.7) (228.2) (494.5)
- Changes in the risk adjustment recognised for the risk expired (31.5) (32.4) (54.0)
- Contractual service margin recognised for the services received (200.5) (71.9) (173.1)
- Other amounts including experience adjustments 74.5 (2.8) (43.3)
Allocation of reinsurance premium (421.2) (335.3) (764.9)
Current claims recovered and past service movements 179.7 (10.2) 260.2
Other incurred directly attributable expenses (2.3) (2.2) (4.4)
Amounts recoverable from reinsurers for incurred claims 177.4 (12.4) 255.8
Total net expenses from reinsurance contracts held (243.8) (347.7) (509.1)
6 Net financial result
Finance income/expense from insurance contracts issued and reinsurance
contracts held represents the interest accreted and the effect of changes in
discount rates and other financial assumptions. The net financial result
comprises the Group's net investment income and its net insurance finance
income/expense.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Interest and dividends on financial assets at fair value 182.6 152.8 313.2
Interest on cash and cash equivalents at amortised cost 17.7 15.7 43.5
Net realised fair value gains on financial assets at fair value through 133.1 59.3 131.8
statement of profit or loss
Net unrealised fair value (losses)/gains on financial assets at fair value (19.1) 29.1 95.5
through statement of profit or loss
Investment income from financial assets 314.3 256.9 584.0
Investment management expenses (5.8) (5.2) (9.6)
Net investment income 308.5 251.7 574.4
Interest accreted (159.6) (175.8) (372.5)
Effect of changes in financial assumptions 34.4 201.0 283.4
Net finance (expense)/income from insurance contracts issued (125.2) 25.2 (89.1)
Interest accreted 42.9 42.5 80.4
Effect of changes in financial assumptions (13.5) (30.2) (47.2)
Net finance income from reinsurance contracts held 29.4 12.3 33.2
Net insurance finance (expense)/income (95.8) 37.5 (55.9)
Net financial result 212.7 289.2 518.5
6 months ended
30 June
Year to
31 December
2025
2024
2024
$m
$m
$m
Interest and dividends on financial assets at fair value
182.6
152.8
313.2
Interest on cash and cash equivalents at amortised cost
17.7
15.7
43.5
Net realised fair value gains on financial assets at fair value through
statement of profit or loss
133.1
59.3
131.8
Net unrealised fair value (losses)/gains on financial assets at fair value
through statement of profit or loss
(19.1)
29.1
95.5
Investment income from financial assets
314.3
256.9
584.0
Investment management expenses
(5.8)
(5.2)
(9.6)
Net investment income
308.5
251.7
574.4
Interest accreted
(159.6)
(175.8)
(372.5)
Effect of changes in financial assumptions
34.4
201.0
283.4
Net finance (expense)/income from insurance contracts issued
(125.2)
25.2
(89.1)
Interest accreted
42.9
42.5
80.4
Effect of changes in financial assumptions
(13.5)
(30.2)
(47.2)
Net finance income from reinsurance contracts held
29.4
12.3
33.2
Net insurance finance (expense)/income
(95.8)
37.5
(55.9)
Net financial result
212.7
289.2
518.5
Investment income by category of financial asset
The tables below show the Group's investment income, split by category of
financial asset. 'Other financial assets' includes Cash and cash equivalents
and Derivative financial assets.
Debt securities and syndicate loans Capital growth assets Other financial assets Total
6 months ended 30 June 2025 $m $m $m $m
Interest and dividends 179.1 3.5 17.7 200.3
Net realised gains 28.8 84.6 19.7 133.1
Net unrealised fair value gains/(losses) 19.6 (58.9) 20.2 (19.1)
Total investment income from financial assets 227.5 29.2 57.6 314.3
Debt securities and syndicate loans Capital growth assets Other financial assets Total
6 months ended 30 June 2024 $m $m $m $m
Interest and dividends 142.9 5.6 20.0 168.5
Net realised gains 3.4 54.7 1.2 59.3
Net unrealised fair value gains/(losses) 13.2 19.8 (3.9) 29.1
Total investment income from financial assets 159.5 80.1 17.3 256.9
Debt securities and syndicate loans Capital growth assets Other financial assets Total
Year to 31 December 2024 $m $m $m $m
Interest and dividends 308.8 4.4 43.5 356.7
Net realised gains 39.6 87.6 4.6 131.8
Net unrealised fair value gains/(losses) 84.2 28.4 (17.1) 95.5
Total investment income from financial assets 432.6 120.4 31.0 584.0
7 Other income
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
Income from third-party syndicates 10.0 20.6 28.1
Managing agent profit commissions 21.2 26.2 42.4
Cyber services income 10.8 3.5 9.4
Other income 2.1 19.0 26.1
Total other income 44.1 69.3 106.0
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Income from third-party syndicates
10.0
20.6
28.1
Managing agent profit commissions
21.2
26.2
42.4
Cyber services income
10.8
3.5
9.4
Other income
2.1
19.0
26.1
Total other income
44.1
69.3
106.0
• Income from third-party syndicates primarily relates to managing
agent fees and commissions received from non-Group syndicates by Group service
companies writing business on their behalf.
• Managing agent profit commissions are amounts paid by third-party
syndicates to their managing agent, Beazley Furlonge Limited. The commissions
represent a fixed percentage on profit by underlying year of account.
• Cyber services income represents the revenue generated from the
Group's cyber risk management services.
8 Operating expenses
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
Total administrative expenses(1) 576.5 439.7 1,031.3
Expenses reclassified within the insurance service result (351.8) (279.3) (642.7)
Total operating expenses 224.7 160.4 388.6
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Total administrative expenses(1)
576.5
439.7
1,031.3
Expenses reclassified within the insurance service result
(351.8)
(279.3)
(642.7)
Total operating expenses
224.7
160.4
388.6
(1) Presented net of recharges to third-party syndicates.
9 Finance costs
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
Interest expense on financial liabilities 15.7 15.7 31.6
Interest and charges related to letters of credit 3.9 2.3 4.8
Interest expense on lease liabilities 1.4 1.5 2.9
Total finance costs 21.0 19.5 39.3
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Interest expense on financial liabilities
15.7
15.7
31.6
Interest and charges related to letters of credit
3.9
2.3
4.8
Interest expense on lease liabilities
1.4
1.5
2.9
Total finance costs
21.0
19.5
39.3
10 Tax expense
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
Current tax expense 123.0 152.7 219.3
Prior year adjustment (10.5) 8.5 14.2
Pillar Two tax expense 4.6 8.7 13.1
Current tax expense 117.1 169.9 246.6
Origination and reversal of temporary differences (30.8) (13.8) 50.8
Prior year adjustments (4.1) 1.2 (4.2)
Deferred tax (credit)/expense (34.9) (12.6) 46.6
Tax expense 82.2 157.3 293.2
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Current tax expense
123.0
152.7
219.3
Prior year adjustment
(10.5)
8.5
14.2
Pillar Two tax expense
4.6
8.7
13.1
Current tax expense
117.1
169.9
246.6
Origination and reversal of temporary differences
(30.8)
(13.8)
50.8
Prior year adjustments
(4.1)
1.2
(4.2)
Deferred tax (credit)/expense
(34.9)
(12.6)
46.6
Tax expense
82.2
157.3
293.2
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
Deferred tax asset 217.9 105.9 191.8
Deferred tax liability (376.9) (245.6) (387.2)
Net deferred tax liability (159.0) (139.7) (195.4)
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Deferred tax asset
217.9
105.9
191.8
Deferred tax liability
(376.9)
(245.6)
(387.2)
Net deferred tax liability
(159.0)
(139.7)
(195.4)
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
$m $m $m
UK (234.5) (180.5) (245.1)
US 203.6 105.9 191.8
Ireland (103.0) (51.7) (98.5)
Other¹ (25.1) (13.4) (43.6)
Net deferred tax liability (159.0) (139.7) (195.4)
6 months
ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
UK
(234.5)
(180.5)
(245.1)
US
203.6
105.9
191.8
Ireland
(103.0)
(51.7)
(98.5)
Other¹
(25.1)
(13.4)
(43.6)
Net deferred tax liability
(159.0)
(139.7)
(195.4)
(1 Includes Canada, France, Germany, Spain and Switzerland.)
Effective tax rate
Tax for the period to 30 June 2025 has been charged at a rate of 16.4% (30
June 2024: 21.6%; 31 December 2024: 20.6%). For the current year, this
represents the best estimate of the average effective tax rate expected for
the full year, applied to the pre‑tax income of the six-month period. The
effective tax rate is lower than in 2024 primarily due to a prior year
adjustment following a change in estimate of foreign tax credits receivable.
Global minimum tax rate (Pillar Two)
The Group incurs additional tax in Ireland above the statutory corporation tax
rate of 12.5% as a result of the qualified domestic minimum top-up tax enacted
by the Irish Government which applies a 15% minimum tax rate to in-scope
companies. The expected amount payable is included in the table above. The
Group expects any top-up tax payable in other jurisdictions in which it
operates to be immaterial.
The Group has applied the temporary mandatory exemption from accounting for
deferred taxes under the Pillar Two rules. Therefore, no deferred taxes have
been recognised by the Group in relation to the Pillar Two rules.
11 Earnings per share
6 months 6 months Year to
ended ended 31 December
30 June 30 June 2024
2025 2024
Profit after tax ($m) 420.3 571.6 1,130.3
Weighted average number of shares in issue (millions) 625.0 658.3 645.5
Adjusted weighted average number of shares in issue (millions) 643.1 673.9 663.3
Basic (cents) 67.2 86.8 175.1
Diluted (cents) 65.4 84.8 170.4
Basic (pence) 52.5 68.7 137.0
Diluted (pence) 51.0 67.1 133.3
6 months
ended
30 June
2024
Year to
31 December
2024
Profit after tax ($m)
420.3
571.6
1,130.3
Weighted average number of shares in issue (millions)
625.0
658.3
645.5
Adjusted weighted average number of shares in issue (millions)
643.1
673.9
663.3
Basic (cents)
67.2
86.8
175.1
Diluted (cents)
65.4
84.8
170.4
Basic (pence)
52.5
68.7
137.0
Diluted (pence)
51.0
67.1
133.3
Basic earnings per share is calculated by dividing profit after tax by the
weighted average number of shares in issue. Diluted earnings per share is
calculated by dividing profit after tax by the adjusted weighted average
number of shares in issue. This assumes conversion of dilutive potential
ordinary shares, being shares from equity settled employee compensation
schemes. Note that both calculations exclude the shares held in the Employee
Share Options Plan of 7.4m as at 30 June 2025 (30 June 2024: 8.8m; 31
December 2024: 9.1m) until such time as they vest unconditionally with the
employees.
When calculating the weighted average number of shares in issue over the
reporting period, the purchases under the share buyback scheme (see Note 15)
were considered on a daily basis. The overall effect of the buyback was a
reduction by 7.5m in the average number of shares on both a basic and diluted
basis, offset by the issuance of 2.6m shares relating to employee share
schemes and the Beazley employee benefit trust on a basic basis (2.9m
diluted).
Further details of equity compensation plans can be found in the Group's
Annual Report and Accounts 2024. Refer to Note 23 on page 220 and the
Directors' remuneration report on pages 135 to 157.
12 Dividends per share
No dividend has been declared in respect of the six months ended 30 June 2025
(6 months ended 30 June 2024: nil).
A dividend of 25.0p per ordinary share was paid to eligible shareholders on 2
May 2025 in respect of the year ended
31 December 2024.
13 Financial assets and liabilities
13a Carrying values of financial assets and liabilities
Financial assets - carrying values
Set out below are the carrying values of the Group's Financial assets at fair
value per the statement of financial position. These amounts exclude Cash and
cash equivalents and Other receivables which are carried at amortised cost and
presented separately.
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Debt securities:
- Government-issued 4,558.6 4,166.6 4,289.1
- Corporate
- Investment grade 3,416.7 3,589.9 3,862.3
- High yield 664.8 632.4 662.4
- Securitised
- Collateralised loan obligations 536.5 - 480.0
Syndicate loans 22.5 28.8 29.5
Total debt securities and syndicate loans 9,199.1 8,417.7 9,323.3
Equity funds 397.8 432.2 348.7
Hedge funds 761.6 645.2 752.0
Illiquid credit assets 166.9 212.6 175.4
Total capital growth assets 1,326.3 1,290.0 1,276.1
Total financial investments at fair value through statement of profit or loss 10,525.4 9,707.7 10,599.4
Derivative financial assets 9.6 9.6 11.2
Total financial assets at fair value 10,535.0 9,717.3 10,610.6
30 June
2024
31 December
2024
$m
$m
$m
Debt securities:
- Government-issued
4,558.6
4,166.6
4,289.1
- Corporate
- Investment grade
3,416.7
3,589.9
3,862.3
- High yield
664.8
632.4
662.4
- Securitised
- Collateralised loan obligations
536.5
-
480.0
Syndicate loans
22.5
28.8
29.5
Total debt securities and syndicate loans
9,199.1
8,417.7
9,323.3
Equity funds
397.8
432.2
348.7
Hedge funds
761.6
645.2
752.0
Illiquid credit assets
166.9
212.6
175.4
Total capital growth assets
1,326.3
1,290.0
1,276.1
Total financial investments at fair value through statement of profit or loss
10,525.4
9,707.7
10,599.4
Derivative financial assets
9.6
9.6
11.2
Total financial assets at fair value
10,535.0
9,717.3
10,610.6
The fair value of these assets at 30 June 2025 excludes an unfunded commitment
of $32.0m (30 June 2024: $30.2m 31 December 2024: $33.6m).
Financial liabilities - carrying values
Set out below are the carrying values of the Group's Financial liabilities per
the statement of financial position. These amounts exclude Lease liabilities
and Other payables which are carried at amortised cost and presented
separately.
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Tier 2 subordinated debt (2026) 249.8 249.6 249.7
Tier 2 subordinated debt (2029) 299.1 298.9 299.0
Derivative financial liabilities 13.5 5.9 27.3
Total financial liabilities 562.4 554.4 576.0
30 June
2024
31 December
2024
$m
$m
$m
Tier 2 subordinated debt (2026)
249.8
249.6
249.7
Tier 2 subordinated debt (2029)
299.1
298.9
299.0
Derivative financial liabilities
13.5
5.9
27.3
Total financial liabilities
562.4
554.4
576.0
13b Valuation hierarchy
All assets and liabilities for which fair value is measured or disclosed in
the financial statements are categorised within the fair value hierarchy
described as follows. If the inputs used to measure the fair value of an asset
or a liability could be categorised in different levels of the fair value
hierarchy, then the fair value measurement is categorised in its entirety
in the same level of the fair value hierarchy as the lowest level input that
is significant to the entire measurement.
Fair value is the price at which an orderly transaction to sell an asset or to
transfer a liability would take place between market participants at the
measurement date. Fair value is a market-based measure and in the absence of
observable market prices in an active market, it is measured using the
assumptions that market participants would use when pricing the asset or
liability.
The best evidence of the fair value of a financial instrument at initial
recognition is the transaction price, i.e. the fair value of the
consideration given or received, unless the fair value of that instrument is
evidenced by comparison with other observable current market transactions in
the same instrument (i.e. without modification or repackaging) or based
on a valuation technique whose variables include only data from observable
markets. When the transaction price provides the best evidence of fair value
at initial recognition, the financial instrument is initially measured at the
transaction price and any difference between this price and the value
initially obtained from a valuation model is subsequently recognised in profit
or loss depending on the individual facts and circumstances of the transaction
but before the valuation is supported wholly by observable market data or the
transaction is closed out.
Level 1 - Valuations based on quoted prices in active markets for identical
instruments. An active market is a market in which transactions for the
instrument occur with sufficient frequency and volume on an ongoing basis such
that quoted prices reflect prices at which an orderly transaction would take
place between market participants at the measurement date.
Level 2 - Valuations based on quoted prices in markets that are not active, or
based on pricing models for which significant inputs can be corroborated by
observable market data, directly or indirectly (e.g. interest rates and
exchange rates). Level 2 inputs include:
• Quoted prices for similar assets and liabilities in active
markets;
• Quoted prices for identical or similar assets and liabilities in
markets that are not active, the prices are not current, or price quotations
vary substantially either over time or among market makers, or in which little
information is released publicly;
• Inputs other than quoted prices that are observable for the asset
or liability (for example, interest rates and yield curves observable at
commonly quoted intervals, implied volatilities and credit spreads); and
• Market corroborated inputs.
Included within level 2 are government bonds and treasury bills, equity funds
and corporate bonds which are not actively traded, hedge funds, collateralised
loan obligations and senior secured loans.
Level 3 - Valuations based on inputs that are unobservable or for which there
is limited market activity against which to measure fair value. The
availability of financial data can vary for different financial assets and is
affected by a wide variety of factors, including the type of financial
instrument, whether it is new and not yet established in the marketplace, and
other characteristics specific to each transaction. To the extent that
valuation is based on models or inputs that are unobservable in the market,
the determination of fair value requires more judgement. Accordingly the
degree of judgement exercised by management in determining fair value is
greatest for instruments classified in level 3. The Group uses prices and
inputs that are current as of the measurement date for valuation of these
instruments.
Valuation approach - level 2 instruments
a) For the Group's level 2 government-issued bonds and corporate bonds, prices
are derived from Bloomberg. On a monthly basis, these are validated against
both internal sources and prices provided by our administrator.
b) For the Group's level 2 collateralised loan obligations, our fund
administrator provides daily pricing derived from a market‑accepted
theoretical model using data sourced from Bloomberg/Reuters as inputs. On a
monthly basis, prices from our administrator are validated against those
provided by our custodians. These are also checked internally for consistency.
c) For our hedge funds, the pricing and valuation of each fund is undertaken
by administrators in accordance with each underlying fund's valuation policy.
Individual fund prices are communicated by the administrators to all investors
via the monthly investor statements. The fair value of the hedge fund
portfolios are calculated by reference to the underlying net asset values of
each of the individual funds. Our hedge funds are managed by Falcon Money
Management Holdings Limited, an associate of the Group.
d) Subordinated debt fair values are based on quoted market prices and exclude
accrued interest payable.
Valuation approach - level 3 instruments
a) Our illiquid fund investments are generally closed-ended limited
partnerships or open-ended funds. The Group relies on a third party fund
manager to manage these investments and provide valuations. Note that while
the funds report with full transparency on their underlying investments, the
investments themselves are predominantly in private and unquoted instruments.
The valuation techniques used by the fund managers to establish the fair
values therefore require a degree of estimation. For example, these may
incorporate discounted cash flow models or a more market-based approach,
whilst the main inputs might include discount rates, fundamental pricing
multiples, recent transaction prices, or comparable market information to
create a benchmark multiple.
b) Syndicate loans are non-tradeable instruments provided by our Group
syndicates to the Central Fund at Lloyd's in respect of the 2020 and 2019
underwriting years. The 2019 loan was repaid by Lloyd's in the first half of
2024, and a tranche of the 2020 loan was repaid by Lloyd's in June 2025. We
expect all loans to be repaid by 31 December 2025.
These loans are valued internally using discounted cash flow models provided
by Lloyd's to the market, designed to appropriately reflect the credit and
illiquidity risk of the instruments. Valuation outputs are then validated
using a control model, with the following inputs and assumptions. Note that
these internally valued instruments are deemed by management to be inherently
more subjective than external valuations.
• Cash flows are comprised of the notional cost of the loans, annual
interest income, and the final repayment of the loans at the end of the
five-year term. The interest rate applied to the remaining tranche of
syndicate loans is 3.3% (30 June 2024: weighted average 3.7%; 31 December
2024: weighted average 3.8%).
• The discount rate applied to the remaining tranche of syndicate
loans is 7.9% (30 June 2024: weighted average 9.2%; 31 December 2024:
weighted average 8.3%). This is calculated using a combination of the
long-term treasury bond risk‑free rate, the industry/geographic average
regression beta and a selected risk premium.
c) Certain collateralised loan obligation securities are classified within
level 3. These represent instruments which were issued late in the period and
are priced at par, predominantly as these had not settled at the balance sheet
date. As this is deemed to be an unobservable input these are classified
within level 3. These instruments move into level 2 as they begin to be
priced by our pricing vendors using models with observable market inputs.
A 10% decrease in the fair value of the Group's level 3 financial assets would
result in a reduction of $16.2m in profit after tax/equity for the period (30
June 2024: reduction of $18.9m; 31 December 2024: reduction of $23.0m).
There were no changes in the valuation techniques during the year compared to
those described in the Group's 2024 Annual Report and Accounts.
13c Fair values of financial assets and liabilities
The following tables show the fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. The fair
value of the Group's subordinated debt excludes any accrued interest to allow
comparability with the carrying value in the Group's financial statements. The
Group's cash and cash equivalents, other receivables, lease liabilities and
other payables have been excluded from these tables. These instruments are
measured at amortised cost and their carrying values are deemed
to be reasonable approximations of fair values at the reporting date.
Level 1 Level 2 Level 3 Total
30 June 2025 $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 3,049.3 1,509.3 - 4,558.6
- Corporate
- Investment grade 2,293.5 1,123.2 - 3,416.7
- High yield 664.8 - - 664.8
- Securitised
- Collateralised loan obligations - 532.5 4.0 536.5
Syndicate loans - - 22.5 22.5
Equity funds 397.8 - - 397.8
Hedge funds - 761.6 - 761.6
Illiquid credit assets - - 166.9 166.9
Derivative financial assets 9.6 - - 9.6
Total financial assets carried at fair value 6,415.0 3,926.6 193.4 10,535.0
Financial liabilities carried at fair value
Derivative financial liabilities 13.5 - - 13.5
Total financial liabilities carried at fair value 13.5 - - 13.5
Fair value of financial liabilities carried at amortised cost
Tier 2 subordinated debt (2026) - 251.6 - 251.6
Tier 2 subordinated debt (2029) - 299.3 - 299.3
Total fair value of financial liabilities carried at amortised cost - 550.9 - 550.9
Level 1 Level 2 Level 3 Total
30 June 2024 $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 2,948.9 1,217.7 - 4,166.6
- Corporate
- Investment grade 2,552.1 1,037.8 - 3,589.9
- High yield 632.4 - - 632.4
Syndicate loans - - 28.8 28.8
Equity funds 432.2 - - 432.2
Hedge funds - 645.2 - 645.2
Illiquid credit assets - - 212.6 212.6
Derivative financial assets 9.6 - - 9.6
Total financial assets carried at fair value 6,575.2 2,900.7 241.4 9,717.3
Financial liabilities carried at fair value
Derivative financial liabilities 5.9 - - 5.9
Total financial liabilities carried at fair value 5.9 - - 5.9
Fair value of financial liabilities carried at amortised cost
Tier 2 subordinated debt (2026) - 245.7 - 245.7
Tier 2 subordinated debt (2029) - 287.1 - 287.1
Total fair value of financial liabilities carried at amortised cost - 532.8 - 532.8
Level 1 Level 2 Level 3 Total
31 December 2024 $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 3,235.9 1,053.2 - 4,289.1
- Corporate bonds
- Investment-grade 1,819.5 2,042.8 - 3,862.3
- High-yield 662.4 - - 662.4
- Securitised
- Collateralised loan obligations - 395.4 84.6 480.0
Syndicate loans - - 29.5 29.5
Equity funds 348.7 - - 348.7
Hedge funds - 752.0 - 752.0
Illiquid credit assets - - 175.4 175.4
Derivative financial assets 11.2 - - 11.2
Total financial assets carried at fair value 6,077.7 4,243.4 289.5 10,610.6
Financial liabilities carried at fair value
Derivative financial liabilities 27.3 - - 27.3
Total financial liabilities carried at fair value 27.3 - - 27.3
Fair value of financial liabilities carried at amortised cost
Tier 2 subordinated debt (2026) - 250.6 - 250.6
Tier 2 subordinated debt (2029) - 294.0 - 294.0
Total fair value of financial liabilities carried at amortised cost - 544.6 - 544.6
13d Transfers
The Group determines whether transfers have occurred between levels in the
fair value hierarchy by assessing categorisation at the end of the reporting
period. The following transfers between levels 1 & 2 for the period ended
30 June 2025 reflect the level of trading activities including frequency and
volume derived from market data obtained from an independent external
valuation tool.
Level 1 Level 2
30 June 2025 vs 31 December 2024 transfer from level 2 to level 1 $m $m
- Corporate Bonds - Investment-grade 1,079.9 (1,079.9)
Level 1 Level 2
30 June 2025 vs 31 December 2024 transfer from level 1 to level 2 $m $m
- Corporate Bonds - Investment-grade (299.2) 299.2
- Government-issued (86.6) 86.6
The below transfers between level 3 & 2 for the period ended 30 June 2025
represent the collateralised loan obligations which were issued in late 2024
and had not settled at the balance sheet date. As such, they were classified
as level 3 at 31 December 2024 and have moved to level 2 as at 30 June 2025
as our pricing vendors have begun to use models with observable market inputs
to price these securities.
Level 2 Level 3
30 June 2025 vs 31 December 2024 transfer from level 3 to level 2 $m $m
- Collateralised loan obligations 64.2 (64.2)
There were no transfers into or out of level 3 in the six months ended 30 June
2024 or year ended 31 December 2024.
The values shown in the transfer tables above are translated using foreign
exchange rates as at 30 June 2025.
13e Level 3 investment reconciliations
The table below shows a reconciliation from opening to closing of the Group's
level 3 investments. All realised and unrealised gains/(losses) are recognised
through Net investment income in the statement of profit or loss (refer to
Note 6).
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Opening position as at 1 January 289.5 254.2 254.2
Purchases 8.9 20.7 118.7
Sales (38.6) (35.0) (69.2)
Repayment of syndicate loan (8.2) (7.7) (7.7)
Realised gains 9.3 10.5 18.6
Unrealised losses (5.3) (2.0) (25.6)
Transfers out (64.2) - -
Foreign exchange gain 2.0 0.7 0.5
Closing position 193.4 241.4 289.5
6 months ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Opening position as at 1 January
289.5
254.2
254.2
Purchases
8.9
20.7
118.7
Sales
(38.6)
(35.0)
(69.2)
Repayment of syndicate loan
(8.2)
(7.7)
(7.7)
Realised gains
9.3
10.5
18.6
Unrealised losses
(5.3)
(2.0)
(25.6)
Transfers out
(64.2)
-
-
Foreign exchange gain
2.0
0.7
0.5
Closing position
193.4
241.4
289.5
13f Credit risk exposure of financial assets
The tables below show the credit ratings of the Group's financial assets at
fair value and cash and cash equivalents. Credit ratings are determined by
taking the average of the ratings sourced from three major agencies (A.M.
Best, Moody's and Standard & Poor's). Financial investments falling within
the unrated category are those for which there is no readily available market
data to allow classification within the respective tiers.
AAA AA A BBB BB and lower Unrated Total
30 June 2025 $m $m $m $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 3,651.0 610.2 297.4 - - - 4,558.6
- Corporate (investment-grade and high-yield) 18.8 186.5 2,159.7 1,051.7 664.8 - 4,081.5
- Securitised (collateralised loan obligations) 536.5 - - - - - 536.5
Syndicate loans - - 22.5 - - - 22.5
Equity funds - - - - - 397.8 397.8
Hedge funds - - - - - 761.6 761.6
Illiquid credit assets - - - - - 166.9 166.9
Derivative financial assets - - - - - 9.6 9.6
Total financial assets at fair value 4,206.3 796.7 2,479.6 1,051.7 664.8 1,335.9 10,535.0
Cash and cash equivalents 107.9 74.0 799.8 4.2 - - 985.9
Total financial assets at fair value and cash and cash equivalents 4,314.2 870.7 3,279.4 1,055.9 664.8 1,335.9 11,520.9
610.2
297.4
-
-
-
4,558.6
- Corporate (investment-grade and high-yield)
18.8
186.5
2,159.7
1,051.7
664.8
-
4,081.5
- Securitised (collateralised loan obligations)
536.5
-
-
-
-
-
536.5
Syndicate loans
-
-
22.5
-
-
-
22.5
Equity funds
-
-
-
-
-
397.8
397.8
Hedge funds
-
-
-
-
-
761.6
761.6
Illiquid credit assets
-
-
-
-
-
166.9
166.9
Derivative financial assets
-
-
-
-
-
9.6
9.6
Total financial assets at fair value
4,206.3
796.7
2,479.6
1,051.7
664.8
1,335.9
10,535.0
Cash and cash equivalents
107.9
74.0
799.8
4.2
-
-
985.9
Total financial assets at fair value and cash and cash equivalents
4,314.2
870.7
3,279.4
1,055.9
664.8
1,335.9
11,520.9
AAA AA A BBB BB and lower Unrated Total
30 June 2024 $m $m $m $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 3,135.2 767.3 264.1 - - - 4,166.6
- Corporate (investment-grade and high-yield) 29.4 200.0 2,367.8 992.7 632.4 - 4,222.3
Syndicate loans - - 28.8 - - - 28.8
Equity funds - - - - - 432.2 432.2
Hedge funds - - - - - 645.2 645.2
Illiquid credit assets - - - - - 212.6 212.6
Derivative financial assets - - - - - 9.6 9.6
Total financial assets at fair value 3,164.6 967.3 2,660.7 992.7 632.4 1,299.6 9,717.3
Cash and cash equivalents 150.0 71.2 724.4 - - - 945.6
Total financial assets at fair value and cash and cash equivalents 3,314.6 1,038.5 3,385.1 992.7 632.4 1,299.6 10,662.9
767.3
264.1
-
-
-
4,166.6
- Corporate (investment-grade and high-yield)
29.4
200.0
2,367.8
992.7
632.4
-
4,222.3
Syndicate loans
-
-
28.8
-
-
-
28.8
Equity funds
-
-
-
-
-
432.2
432.2
Hedge funds
-
-
-
-
-
645.2
645.2
Illiquid credit assets
-
-
-
-
-
212.6
212.6
Derivative financial assets
-
-
-
-
-
9.6
9.6
Total financial assets at fair value
3,164.6
967.3
2,660.7
992.7
632.4
1,299.6
9,717.3
Cash and cash equivalents
150.0
71.2
724.4
-
-
-
945.6
Total financial assets at fair value and cash and cash equivalents
3,314.6
1,038.5
3,385.1
992.7
632.4
1,299.6
10,662.9
AAA AA A BBB BB and lower Unrated* Total
31 December 2024 $m $m $m $m $m $m $m
Financial assets carried at fair value
Fixed and floating rate debt securities
- Government-issued 3,489.1 561.0 239.0 - - - 4,289.1
- Corporate (investment-grade and high-yield) 29.9 214.5 2,589.0 1,028.9 662.4 - 4,524.7
- Securitised (collateralised loan obligations) 331.6 - - - - 148.4 480.0
Syndicate loans - - 29.5 - - - 29.5
Equity funds - - - - - 348.7 348.7
Hedge funds - - - - - 752.0 752.0
Illiquid credit assets - - - - - 175.4 175.4
Derivative financial assets - - - - - 11.2 11.2
Total financial assets at fair value 3,850.6 775.5 2,857.5 1,028.9 662.4 1,435.7 10,610.6
Cash and cash equivalents 97.9 78.8 705.4 - - - 882.1
Total financial assets at fair value and cash and cash equivalents 3,948.5 854.3 3,562.9 1,028.9 662.4 1,435.7 11,492.7
561.0
239.0
-
-
-
4,289.1
- Corporate (investment-grade and high-yield)
29.9
214.5
2,589.0
1,028.9
662.4
-
4,524.7
- Securitised (collateralised loan obligations)
331.6
-
-
-
-
148.4
480.0
Syndicate loans
-
-
29.5
-
-
-
29.5
Equity funds
-
-
-
-
-
348.7
348.7
Hedge funds
-
-
-
-
-
752.0
752.0
Illiquid credit assets
-
-
-
-
-
175.4
175.4
Derivative financial assets
-
-
-
-
-
11.2
11.2
Total financial assets at fair value
3,850.6
775.5
2,857.5
1,028.9
662.4
1,435.7
10,610.6
Cash and cash equivalents
97.9
78.8
705.4
-
-
-
882.1
Total financial assets at fair value and cash and cash equivalents
3,948.5
854.3
3,562.9
1,028.9
662.4
1,435.7
11,492.7
*We have re-presented the above disclosure compared to what was included in
Note 29 of the 2024 Annual Report and Accounts to give further detail on the
credit profile of our investments. As a result of this change, we have
restated $100.1m of fixed and floating rate debt securities that were
previously disclosed as unrated. These are now disclosed as AAA rated
Government-issued debt securities.
14 Insurance and reinsurance contract assets and liabilities
14a Analysis by measurement component
i) Insurance contracts issued
The table below sets out the estimated present value of future cash flows, the
risk adjustment for non-financial risk and the contractual service margin
(CSM) for insurance contracts issued.
Present value of future cash flows Risk adjustment for non-financial risk CSM Total
$m $m $m $m
Insurance contract assets 103.8 (1.2) (1.1) 101.5
Insurance contract liabilities (6,874.5) (774.8) (342.9) (7,992.2)
Net balance at 01 January 2024 (6,770.7) (776.0) (344.0) (7,890.7)
Insurance contract assets 117.5 (1.0) (0.5) 116.0
Insurance contract liabilities (6,916.1) (748.9) (453.7) (8,118.7)
Net balance at 30 June 2024 (6,798.6) (749.9) (454.2) (8,002.7)
Insurance contract assets 24.5 (3.9) (0.4) 20.2
Insurance contract liabilities (7,525.3) (808.9) (480.1) (8,814.3)
Net balance at 31 December 2024 (7,500.8) (812.8) (480.5) (8,794.1)
Insurance contract assets 20.7 (2.9) (0.4) 17.4
Insurance contract liabilities (7,657.1) (813.6) (602.8) (9,073.5)
Net balance at 30 June 2024 (7,636.4) (816.5) (603.2) (9,056.1)
ii) Reinsurance contracts held
The table below sets out the estimates of the present value of future cash
flows, risk adjustment for non-financial risk and CSM for reinsurance
contracts held.
Present value of future cash flows Risk adjustment for non-financial risk CSM Total
$m $m $m $m
Reinsurance contract assets 2,143.4 166.2 117.1 2,426.7
Reinsurance contract liabilities (404.4) 58.4 12.5 (333.5)
Net balance at 01 January 2024 1,739.0 224.6 129.6 2,093.2
Reinsurance contract assets 2,108.3 153.3 161.1 2,422.7
Reinsurance contract liabilities (487.2) 21.1 76.3 (389.8)
Net balance at 30 June 2024 1,621.1 174.4 237.4 2,032.9
Reinsurance contract assets 2,309.7 160.4 196.5 2,666.6
Reinsurance contract liabilities (350.2) 15.0 38.1 (297.1)
Net balance at 31 December 2024 1,959.5 175.4 234.6 2,369.5
Reinsurance contract assets 2,404.8 176.3 348.3 2,929.4
Reinsurance contract liabilities (534.9) 18.3 72.4 (444.2)
Net balance at 30 June 2025 1,869.9 194.6 420.7 2,485.2
14b Analysis of the liability for remaining coverage and the liability for
incurred claim
i) Insurance contracts issued
The table below analyses insurance contract assets and liabilities between the
liability for remaining coverage (LRC) and the liability for incurred claims
(LIC) for insurance contracts issued.
LRC LIC Total
Excluding Loss Component Loss Component
$m $m $m $m
Insurance contract assets 101.7 - (0.2) 101.5
Insurance contract liabilities (848.8) (8.3) (7,135.1) (7,992.2)
Net balance at 01 January 2024 (747.1) (8.3) (7,135.3) (7,890.7)
Insurance contract assets 115.0 - 1.0 116.0
Insurance contract liabilities (873.5) (2.7) (7,242.5) (8,118.7)
Net balance at 30 June 2024 (758.5) (2.7) (7,241.5) (8,002.7)
Insurance contract assets 52.4 - (32.2) 20.2
Insurance contract liabilities (1,243.6) (3.2) (7,567.5) (8,814.3)
Net balance at 31 December 2024 (1,191.2) (3.2) (7,599.7) (8,794.1)
Insurance contract assets 43.1 - (25.7) 17.4
Insurance contract liabilities (1,295.6) (1.7) (7,776.2) (9,073.5)
Net balance at 30 June 2025 (1,252.5) (1.7) (7,801.9) (9,056.1)
ii) Reinsurance contracts held
The table below analyses reinsurance contract assets and liabilities between
the asset for remaining coverage (ARC) and asset for incurred claims (AIC) for
reinsurance contracts held.
ARC AIC Total
$m $m $m
Reinsurance contract assets 758.4 1,668.3 2,426.7
Reinsurance contract liabilities (1,080.3) 746.8 (333.5)
Net balance at 01 January 2024 (321.9) 2,415.1 2,093.2
Reinsurance contract assets 181.2 2,241.5 2,422.7
Reinsurance contract liabilities (422.2) 32.4 (389.8)
Net balance at 30 June 2024 (241.0) 2,273.9 2,032.9
Reinsurance contract assets 573.8 2,092.8 2,666.6
Reinsurance contract liabilities (434.1) 137.0 (297.1)
Net balance at 31 December 2024 139.7 2,229.8 2,369.5
Reinsurance contract assets 693.7 2,235.7 2,929.4
Reinsurance contract liabilities (434.7) (9.5) (444.2)
Net balance at 30 June 2025 259.0 2,226.2 2,485.2
14c Future CSM release
The tables below show when the Group expects to release the closing CSM to the
profit or loss, in appropriate future time bands which are based on calendar
years (i.e. 1 January to 31 December). They are presented for both insurance
contracts issued and reinsurance contracts held.
30 June 30 June 31 December
2025 2024 2024
Insurance contracts issued $m $m $m
Number of years until expected to be recognised
1 393.5 294.2 421.7
2 151.3 116.1 20.1
3 20.4 15.9 13.6
4 13.0 10.8 8.7
5 8.5 7.0 5.5
6-10 16.5 10.2 10.9
Total 603.2 454.2 480.5
30 June
2024
31 December
2024
Insurance contracts issued
$m
$m
$m
Number of years until expected to be recognised
1
393.5
294.2
421.7
2
151.3
116.1
20.1
3
20.4
15.9
13.6
4
13.0
10.8
8.7
5
8.5
7.0
5.5
6-10
16.5
10.2
10.9
Total
603.2
454.2
480.5
30 June 30 June 31 December
2025 2024 2024
Reinsurance contracts held $m $m $m
Number of years until expected to be recognised
1 231.6 127.3 151.7
2 161.4 100.0 49.7
3 22.0 3.9 26.2
4 2.2 2.4 2.5
5 1.4 1.6 1.4
6-10 2.1 2.2 3.1
Total 420.7 237.4 234.6
30 June
2024
31 December
2024
Reinsurance contracts held
$m
$m
$m
Number of years until expected to be recognised
1
231.6
127.3
151.7
2
161.4
100.0
49.7
3
22.0
3.9
26.2
4
2.2
2.4
2.5
5
1.4
1.6
1.4
6-10
2.1
2.2
3.1
Total
420.7
237.4
234.6
14d Changes in accounting estimates
Insurance and reinsurance contract assets and liabilities included within the
Group's statement of financial position are made up of multiple components.
The LRC includes an element of the present value of future cash flows, a risk
adjustment for non‑financial risk and the CSM. The LIC includes the
remainder of the present value of future cash flows and a risk adjustment for
non-financial risk. For portfolios of issued insurance contracts that
are onerous, a loss component is included within the LRC and recognised in
profit or loss upon initial recognition. No loss component is recorded for
reinsurance contracts held.
The present value of future cash flows is sensitive to changes in accounting
estimates, in particular the estimation of future cash flows which are made on
a best estimate basis, and discount rates. As estimates of premiums, expenses
and claims change, this is reflected within the present value of future cash
flows, in addition to the incorporation of cash flows relating to new business
and crystallisation of expected cash flows relating to in-force business. The
risk adjustment changes as amounts are released from in-force business, offset
by the recognition of new business and any changes to the cost of capital
applied. For an explanation of how amounts have moved in the year as a result
of changes in cash flows and amounts recognised in profit or loss, refer to
Note 2.
Future cash flows
The Group has estimated the amount, timing and probability of future cash
flows. Estimates are formed by applying assumptions about past events, current
conditions and forecasts of future conditions. These have been outlined below:
• Future expected premium cash flows are based on data entered into
underwriting systems. These have a level of estimate embedded for certain
contracts, with payment/settlement patterns used to determine timing.
• Gross and reinsured claims payments are determined using an
approach whereby cash flows are set at a Year of Account (YoA) and reserving
class level based on the latest quarterly reserving exercise.
• Expenses are deemed to be within the contract boundary, and
therefore included in the cash flows, when these are directly attributable to
fulfilling insurance contracts.
• Lapses/cancellations are projected by applying assumptions
determined through statistical measures based on the Group's experience. These
vary by product type, policy duration and sales trends.
Discount rates
The discount rates applied to expected future cash flows in measuring
insurance contract liabilities have been determined using the bottom-up
approach. This method takes the risk-free rates and adjusts for an illiquidity
premium.
• Risk-free rates are derived using government yield curves
denominated in the same currency as the product being measured, which are
sourced from Moody's. These are based on quarter-start and quarter-end rates.
• The Group's illiquidity premium is also sourced from Moody's and
adjusted to reflect the Group's own asset portfolio. This represents the
differences in the liquidity characteristics between the financial assets used
to derive the risk-free yield and the insurance contract liability
characteristics. The illiquidity premium applied by management is a flat
percentage which varies by currency. For the USD discount rate, which is the
dominant currency of the Group, as at 30 June 2025 this was 0.4% (31
December 2024: 0.3%; 30 June 2024: 0.3%).
30 June 2025 1 Year 3 Year 5 Year
USD 4.4 % 4.2 % 4.3 %
CAD 3.0 % 3.1 % 3.3 %
GBP 4.2 % 4.2 % 4.4 %
EUR 1.9 % 2.1 % 2.4 %
4.2 %
4.3 %
CAD
3.0 %
3.1 %
3.3 %
GBP
4.2 %
4.2 %
4.4 %
EUR
1.9 %
2.1 %
2.4 %
30 June 2024 1 Year 3 Year 5 Year
USD 5.4 % 4.9 % 4.7 %
CAD 5.1 % 4.5 % 4.3 %
GBP 5.0 % 4.6 % 4.4 %
EUR 3.5 % 3.1 % 3.0 %
4.9 %
4.7 %
CAD
5.1 %
4.5 %
4.3 %
GBP
5.0 %
4.6 %
4.4 %
EUR
3.5 %
3.1 %
3.0 %
31 December 2024 1 Year 3 Year 5 Year
USD 4.5 % 4.6 % 4.7 %
CAD 3.4 % 3.3 % 3.4 %
GBP 4.6 % 4.6 % 4.6 %
EUR 2.4 % 2.3 % 2.5 %
4.6 %
4.7 %
CAD
3.4 %
3.3 %
3.4 %
GBP
4.6 %
4.6 %
4.6 %
EUR
2.4 %
2.3 %
2.5 %
Risk adjustment
Estimation of the risk adjustment for non-financial risk is based on various
inputs and assumptions, particularly relating to non-financial risk
components of the solvency capital requirement from the Solvency II internal
model, which captures all material exposure elements for the Group. IFRS 17
does not prescribe a specific methodology for the calculation of the
risk adjustment for non-financial risk, and the Group has elected to use a
cost of capital approach. This is determined by comparing the required return
by each class of business within the internal model. Our overall cross-cycle
return on capital target is 15%. Projected capital amounts are derived from
the annual business plan, with adjustments made to factor in emerging risks
and uncertainties. The risk adjustment therefore differs between portfolios
depending on the inherent risk associated with each.
Diversification is considered between business types (to allow for
negative/positive correlation between risks) and between years (to allow for
the different kind of risk written across years).
The risk adjustment calculations as defined above are performed on a net
basis, and the resulting risk adjustment percentage is then applied separately
to insurance contracts issued and reinsurance contracts held.
The reserve confidence level determined by the actuarial department is
considered as part of a quarterly reserve review exercise. These meetings are
attended by senior management, senior underwriters, and representatives from
actuarial, claims and finance. The reserve confidence level was deemed to be
at the 85th percentile at 30 June 2025 as per output from the latest governed
reserve review (30 June 2024: 88th percentile; 31 December 2024: 84th
percentile) at the balance sheet date. This is in line with the preference
that the Group maintains a reserve confidence level in the 80th to 90th
percentile range.
15 Other reserves
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Employee share options reserve 74.8 47.5 71.2
Employee share trust reserve (49.8) (57.5) (61.8)
Capital redemption reserve 3.7 1.2 2.4
Total other reserves 28.7 (8.8) 11.8
30 June
2024
31 December
2024
$m
$m
$m
Employee share options reserve
74.8
47.5
71.2
Employee share trust reserve
(49.8)
(57.5)
(61.8)
Capital redemption reserve
3.7
1.2
2.4
Total other reserves
28.7
(8.8)
11.8
On 4 March 2025, Beazley plc announced to the market its intention to return
up to $500.0m of surplus capital to its shareholders through a share
repurchase programme running to 28 February 2026. Purchases began on 5 March
2025 and at the balance sheet date, 19.7m ordinary shares had been purchased
for a total consideration of $235.3m. Of these, 0.4m or $4.8m were held as
treasury shares at the balance sheet date and were cancelled by 2 July 2025.
At 30 June 2025, there were 622.2m ordinary shares in issue.
The purchase price of shares, plus directly attributable transaction costs of
$1.5m (such as stamp duty, commissions, legal costs and registrar fees), are
recognised through retained earnings. On their cancellation, the nominal value
of the ordinary shares is deducted from share capital and the equivalent
amount is recognised within the capital redemption reserve.
16 Related party transactions
Aside from the changes noted below, the related-party transactions of the
Group are consistent in nature and scope with those disclosed in Note 31 of
the Group's Annual Report and Accounts for the year ended 31 December 2024.
• From 1 January 2025, several of the Group's insurance carriers
entered into a quota share reinsurance agreement on certain lines of Cyber
business with syndicate 6107, a syndicate managed by the Group's Lloyd's
managing agent, Beazley Furlonge Limited, whose capital is provided entirely
by third parties.
• During the period, the Group's European insurance carrier, Beazley
Insurance dac, entered into agreements to cede portions of specific classes of
business to syndicate 5623, a syndicate managed by Beazley Furlonge Limited.
• For the 2025 YoA, the Group is providing 25.0% capacity to
syndicate 5623 (2024 YoA: 20.0%).
• For the 2025 YoA, Beazley Staff Underwriting Limited is providing
5.4% of capacity to syndicate 623 (2024 YoA: 9.5%). This is a result of a
reallocation of capacity between corporate members in the Group, and is offset
by an increase in the percentage of premium written by syndicate 2623 (wholly
Group capital) in parallel with syndicate 623.
17 Contingencies
On 30 May 2025, the Group renewed its syndicated short-term banking facility
under which $450.0m may be utilised as letters of credit (LOC) placed as funds
at Lloyd's (FAL) to provide capital support for the Group's underwriting at
Lloyd's. Under the renewal terms, the cost of the facility is based on a
commitment fee of 0.4725% per annum for any undrawn amounts; any amounts drawn
as LOC are charged at a margin of 1.10% per annum. Any amounts drawn as cash
are charged at a margin of 1.35% per annum above a reference rate. As at 30
June 2025, $225.0m (30 June 2024: $225.0m; 31 December 2024: $225.0m) has been
issued as LOC and is being utilised to support FAL requirements. No amounts
have been drawn as cash (30 June 2024: $nil; 31 December 2024: $nil).
18 Subsequent events
From 1 July 2025 until the approval of these interim financial statements on
12 August 2025, Beazley plc purchased 6.0m of its ordinary shares for a
consideration of $72.3m pursuant to the Share Buyback programme announced on 4
March 2025. Of these shares, 5.6m were cancelled by 12 August 2025. The
remaining 0.4m are held in treasury and will be cancelled in due course.
Alternative performance measures ("APMs")
Beazley plc uses APMs to help explain its financial performance and position.
These measures are not defined under IFRS. The Group is of the view that the
use of these measures enhances the usefulness of our financial reporting and
allows for improved comparison with industry peers. We previously included as
an APM the "CSM sustainability index", calculated as the closing CSM divided
by the opening CSM. We have decided to discontinue the disclosure of this APM
as we do not consider this provides useful information in assessing the
Group's financial performance.
Information on APMs used by the Group is set out below. Unless otherwise
stated, amounts are disclosed in millions of dollars ($m).
Insurance written premiums & net insurance written premiums
Insurance written premiums ($m) is calculated by deducting the reinstatement
premiums and profit commissions from the gross premiums written. Net
insurance written premiums ($m) is calculated by adding insurance ceded
premiums to this result. These APMs represent management's view of premiums
written in each period. The primary difference between insurance written
premiums and insurance revenue relates to the deferral and earning of income
over the period in which coverage is provided.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Insurance written premiums 3,187.1 3,123.3 6,164.1
Earnings adjustment (253.5) (392.7) (486.0)
Insurance revenue 2,933.6 2,730.6 5,678.1
6 months ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Insurance written premiums
3,187.1
3,123.3
6,164.1
Earnings adjustment
(253.5)
(392.7)
(486.0)
Insurance revenue
2,933.6
2,730.6
5,678.1
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Insurance ceded premiums (586.5) (536.8) (1,011.8)
Earnings adjustment 165.3 201.5 246.9
Allocation of reinsurance premiums (421.2) (335.3) (764.9)
6 months ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Insurance ceded premiums
(586.5)
(536.8)
(1,011.8)
Earnings adjustment
165.3
201.5
246.9
Allocation of reinsurance premiums
(421.2)
(335.3)
(764.9)
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
$m $m $m
Insurance written premiums 3,187.1 3,123.3 6,164.1
Add insurance ceded premiums (586.5) (536.8) (1,011.8)
Net insurance written premiums 2,600.6 2,586.5 5,152.3
6 months ended
30 June
2024
Year to
31 December
2024
$m
$m
$m
Insurance written premiums
3,187.1
3,123.3
6,164.1
Add insurance ceded premiums
(586.5)
(536.8)
(1,011.8)
Net insurance written premiums
2,600.6
2,586.5
5,152.3
Claims, expense & combined ratios
Claims ratio (%) is calculated as insurance service expenses less directly
attributable expenses, net of reinsurance recoveries, divided by insurance
revenue net of reinsurance ceded revenue. Expense ratio (%) is calculated as
the sum of insurance acquisition cash flows amortisation and other directly
attributable expenses, divided by insurance revenue net of reinsurance ceded
revenue. Combined ratio (%) is calculated as insurance service expenses net of
reinsurance recoveries, divided by the insurance revenue net of reinsurance
ceded revenue. This is also the sum of the claims and expense ratios. The
combined ratio below is shown with and without the impact of discounting.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Insurance service expenses ($m) 2,196.1 1,824.9 3,933.0
Less other directly attributable expenses ($m)(1) (843.0) (757.6) (1,558.1)
Less amounts recoverable from reinsurers for incurred claims ($m) (177.4) 12.4 (255.8)
Net claims ($m) 1,175.7 1,079.7 2,119.1
Insurance revenue ($m) 2,933.6 2,730.6 5,678.1
Less allocation of reinsurance premium ($m) (421.2) (335.3) (764.9)
Divided by net insurance revenue ($m) 2,512.4 2,395.3 4,913.2
Claims ratio 46.7% 45.1% 43.1%
Directly attributable expenses ($m)(1) 843.0 757.6 1,558.1
Divided by net insurance revenue ($m) 2,512.4 2,395.3 4,913.2
Expense ratio 33.6% 31.6% 31.7%
Combined ratio 80.3% 76.7% 74.8%
Removal of impact of discounting 4.6% 4.0% 4.2%
Combined ratio (undiscounted) 84.9% 80.7% 79.0%
6 months ended
30 June
2024
Year to
31 December
2024
Insurance service expenses ($m)
2,196.1
1,824.9
3,933.0
Less other directly attributable expenses ($m)(1)
(843.0)
(757.6)
(1,558.1)
Less amounts recoverable from reinsurers for incurred claims ($m)
(177.4)
12.4
(255.8)
Net claims ($m)
1,175.7
1,079.7
2,119.1
Insurance revenue ($m)
2,933.6
2,730.6
5,678.1
Less allocation of reinsurance premium ($m)
(421.2)
(335.3)
(764.9)
Divided by net insurance revenue ($m)
2,512.4
2,395.3
4,913.2
Claims ratio
46.7%
45.1%
43.1%
Directly attributable expenses ($m)(1)
843.0
757.6
1,558.1
Divided by net insurance revenue ($m)
2,512.4
2,395.3
4,913.2
Expense ratio
33.6%
31.6%
31.7%
Combined ratio
80.3%
76.7%
74.8%
Removal of impact of discounting
4.6%
4.0%
4.2%
Combined ratio (undiscounted)
84.9%
80.7%
79.0%
(1) Directly attributable expenses are comprised of insurance acquisition cash
flows amortisation and other directly attributable expenses within Insurance
service expenses, combined with other incurred directly attributable expenses
within Amounts recoverable from reinsurers for incurred claims per Note 2.
Net assets per share & net tangible assets per share
Net assets per share is the ratio (in pence and cents) calculated by dividing
the net assets or total equity of the Group by the number of shares in issue
at the end of the period, excluding those held by the employee benefits trust.
Net tangible assets per share excludes intangible assets from net assets in
the above calculation.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Net assets ($m) 4,652.5 4,180.6 4,606.8
Less intangible assets ($m) (199.0) (178.4) (198.0)
Net tangible assets ($m) 4,453.5 4,002.2 4,408.8
Divided by the shares in issue at the period end (millions)(1): 614.8 646.1 629.9
Net assets per share (cents) 756.8 647.1 731.4
Net tangible assets per share (cents) 724.4 619.4 699.9
Converted at spot rate: 0.74 0.78 0.78
Net assets per share (pence) 560.0 504.7 570.5
Net tangible assets per share (pence) 536.1 483.1 545.9
6 months ended
30 June
2024
Year to
31 December
2024
Net assets ($m)
4,652.5
4,180.6
4,606.8
Less intangible assets ($m)
(199.0)
(178.4)
(198.0)
Net tangible assets ($m)
4,453.5
4,002.2
4,408.8
Divided by the shares in issue at the period end (millions)(1):
614.8
646.1
629.9
Net assets per share (cents)
756.8
647.1
731.4
Net tangible assets per share (cents)
724.4
619.4
699.9
Converted at spot rate:
0.74
0.78
0.78
Net assets per share (pence)
560.0
504.7
570.5
Net tangible assets per share (pence)
536.1
483.1
545.9
(1)Shares in issue at the period end exclude those held by the employee
benefits trust of 7.4m (30 June 2024: 8.8m, 31 December 2024: 9.1m).
Return on equity
Return on equity (%) is calculated by dividing the consolidated profit after
tax by the average equity for the period, calculated as the average of the
opening and closing equity positions.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Profit after tax ($m) 420.3 571.6 1,130.3
Opening equity ($m) 4,606.8 3,882.1 3,882.1
Closing equity ($m) 4,652.5 4,180.6 4,606.8
Divided by average total equity ($m) 4,629.7 4,031.4 4,244.5
Annualised return on equity 18.2% 28.4% 26.6%
6 months ended
30 June
2024
Year to
31 December
2024
Profit after tax ($m)
420.3
571.6
1,130.3
Opening equity ($m)
4,606.8
3,882.1
3,882.1
Closing equity ($m)
4,652.5
4,180.6
4,606.8
Divided by average total equity ($m)
4,629.7
4,031.4
4,244.5
Annualised return on equity
18.2%
28.4%
26.6%
Investment return
Investment return (%) is calculated by dividing the net investment income by
the average financial assets at fair value and cash and cash equivalents held
by the Group over the period.
6 months ended 6 months ended Year to
30 June 30 June 31 December
2025 2024 2024
Net investment income ($m) 308.5 251.7 574.4
Opening invested assets:
Financial assets at fair value ($m) 10,610.6 9,665.5 9,665.5
Cash and cash equivalents ($m) 882.1 812.3 812.3
Invested assets at the beginning of the period ($m): 11,492.7 10,477.8 10,477.8
Closing invested assets:
Financial assets at fair value ($m) 10,535.0 9,717.3 10,610.6
Cash and cash equivalents ($m) 985.9 945.6 882.1
Invested assets at the end of the period ($m): 11,520.9 10,662.9 11,492.7
Divided by average invested assets ($m) 11,506.8 10,570.4 10,985.3
Investment return 2.7% 2.4% 5.2%
Investment return (annualised) 5.4% 4.8% 5.2%
6 months ended
30 June
2024
Year to
31 December
2024
Net investment income ($m)
308.5
251.7
574.4
Opening invested assets:
Financial assets at fair value ($m)
10,610.6
9,665.5
9,665.5
Cash and cash equivalents ($m)
882.1
812.3
812.3
Invested assets at the beginning of the period ($m):
11,492.7
10,477.8
10,477.8
Closing invested assets:
Financial assets at fair value ($m)
10,535.0
9,717.3
10,610.6
Cash and cash equivalents ($m)
985.9
945.6
882.1
Invested assets at the end of the period ($m):
11,520.9
10,662.9
11,492.7
Divided by average invested assets ($m)
11,506.8
10,570.4
10,985.3
Investment return
2.7%
2.4%
5.2%
Investment return (annualised)
5.4%
4.8%
5.2%
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