REG - Beazley PLC - Trading Statement

BeazleyAnnouncement

Tue 07:00

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RNS Number : 5172G  Beazley PLC  29 April 2025

Beazley reiterates outlook for 2025

 

London, 29 April 2025

 

Beazley plc trading statement for the three months ended 31 March 2025

 

 

Overview

·      Insurance written premiums increased by 2% to $1,511m (Q1 2024:
$1,483m)

 

·      Net insurance written premiums increased by 1% $1,249m (Q1 2024:
$1,239m)

 

·      Premium rates on renewal business decreased by 4% (Q1 2024: 1%
increase)

 

·      Investment income of $136m or 1.2% year-to-date (Q1 2024:
investment income of $126m or 1.2%)

 

·      Gross IWP growth guidance for the year remains at mid-single
digits

 

·      Combined ratio guidance for the year remains at mid-80s on an
undiscounted basis

 

 

Adrian Cox, Chief Executive Officer, said:

 

                                      31 March 2025  31 March 2024  % increase
 Insurance written premiums ($m)      1,511          1,483          2%

 Net insurance written premiums ($m)  1,249          1,239          1%

 Investments and cash ($m)            11,757         10,827         9%

 Year to date investment return       1.2%           1.2%

 Rate (decrease)/increase             (4)%           1%

"I am proud of the performance during the quarter. As expected, markets
softened in the first three months of the year and we maintained our focus on
strong underwriting discipline whilst navigating those conditions.

 

Our guidance for the year of mid-single digits growth and an undiscounted
combined ratio of mid-80s is unchanged. The strength of our diversified
product set and platform strategy means we are well positioned to take
advantage of any opportunities which may arise, as pricing dynamics evolve in
this active claims environment."

 

Premiums

 

Our performance to the end of March 2025 by business division is as follows:

 

                  Insurance written premiums  Insurance written premiums  % increase/  Year to date rate change

                                                                          (decrease)

                  31 March 2025               31 March 2024

                  $m                          $m                          %            %

 Cyber Risks      247                         253                         (2)%         (8)%
 Digital          63                          63                          0%           (4)%
 MAP Risks        258                         261                         (1)%         (2)%
 Property Risks   482                         451                         7%           (6)%
 Specialty Risks  461                         455                         1%           0%
 OVERALL          1,511                       1,483                       2%           (4)%

 

 

The performance in Q1 is impacted by prior year premium estimate updates
across a number of our lines. The growth in the quarter is not reflective of
our year-end expectations, and we maintain our growth guidance of mid-single
digits for the year.

 

In Cyber Risks, the market remains competitive. We continue to focus on our
strong value proposition and underwriting discipline and deploying capital
where we see the best risk-reward dynamics.  Rate adequacy is strongest
outside of North America and we are seeing good growth in Europe. Our view of
the long-term opportunities available within Cyber Risks is unchanged.

 

Geopolitical uncertainty is expected to drive demand within MAP Risks. The Q1
result for MAP is particularly impacted by premium estimate updates and we
anticipate strong growth within the division by year-end.

 

Property Risks continues to deliver growth with rates remaining adequate
despite the 6% rate reduction in the first quarter.

 

Capital markets activity has remained subdued at the start of the year, which
impacts growth on certain products within Specialty Risks.  We continue to
expect growth to be flat to moderate within this division.

 

 

Claims

 

Exposure to California wildfire losses remains around $80m as reported during
the 2024 year-end results.

 

There is no direct claims exposure as a result of the trade tariffs imposed in
our political risk, trade credit or specialty book.  Increases in tariffs are
not insured perils under our policies and we do not cover business
interruption losses following these events.

 

Potential inflationary impacts are embedded within our underwriting and claims
processes and are reviewed on an ongoing basis. We currently do not anticipate
a significant direct impact on our business.

Insurance finance income and expense (IFIE)

 

In the first quarter, the change in financial assumptions on the IFIE produced
an income.  This has been more than offset by both an expense resulting from
decreasing yield curves as well as the unwind of discounting credit, resulting
in an insurance finance expense of $68m.

Investments

Our portfolio allocation was as follows:

 

                                            31 March 2025        31 March 2024
                                            Assets   Allocation  Assets   Allocation
                                            $m       %           $m       %
 Cash and cash equivalents                  947      8.1         1,016    9.4
 Fixed and floating rate debt securities
 -     Government issued                    4,418    37.6        4,289    39.6
 -     Corporate bonds
 -     Investment grade                     3,800    32.3        3,683    34.0
 -     High yield                           685      5.8         625      5.8
 -     Securitised
 -     Collateralised loan obligations      519      4.4         -        -
 Syndicate loans                            30       0.3         36       0.3
 Derivative financial assets                26       0.2         5        -
 Core portfolio                             10,425   88.7        9,654    89.1
 Equity funds                               375      3.2         393      3.6
 Hedge funds                                779      6.6         580      5.4
 Illiquid credit assets                     178      1.5         200      1.9
 Capital growth assets                      1,332    11.3        1,173    10.9
 Total                                      11,757   100.0       10,827   100.0

 

 

Our investment portfolio returned 1.2%, or $136m in the first quarter.
Elevated uncertainty driven largely by the trade policy announcements from the
US administration in February and March has led to increased volatility and
declines in equities, and to a lesser extent, corporate bonds.

 

Short-dated US risk free yields fell, supporting asset values.  Looking
ahead, it is likely that financial market volatility will remain for some
time.  Our investment portfolio is well diversified and allocated relatively
conservatively, hence able to withstand the current market environment.

 

As at 31 March, the average yield of our fixed income investments is 4.4% with
an average duration of 1.6 years.

 

 

A conference call for analysts and investors will be held at 8am GMT on
Tuesday 29 April

 

Dial in details for analysts:

UK-Wide: +44 (0) 33 0551 0200

 

Webcast Link for all other participants:

 

https://brrmedia.news/BEZ_Q125 (https://brrmedia.news/BEZ_Q125)

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 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 (http://www.beazley.com/)

 

 

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