REG - Beazley PLC - Trading Statement

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RNS Number : 8150I  Beazley PLC  25 November 2025

Beazley improves 2025 combined ratio outlook, focus remains on underwriting
discipline

 

London, 25 November 2025

 

Beazley plc trading statement for the nine months ended 30 September 2025

 

 

Overview

·      Insurance written premiums increased by 1% to $4,670m (Q3 2024:
$4,625m)

 

·      Net insurance written premiums increased by 4% to $3,927m (Q3
2024: $3,792m)

 

·      Premium rates on renewal business decreased by 4% (Q3 2024: 0%)

 

·      Investment income of $458m or 3.9% year-to-date (Q3 2024:
investment income of $513m or 4.7%)

 

·      2025 IWP growth expected to be flat to low single digits

 

·      Undiscounted combined ratio guidance upgraded to low 80s

 

·      $500m capital deployed to build out new Bermuda(1) platform which
supports growth from 2026 onward

 

(1) Subject to regulatory approval

 

Adrian Cox, Chief Executive Officer, said:

 

"Market conditions are evolving at pace across several of our lines
and we've maintained the same disciplined approach we set out at the half
year. The benefit of this discipline is clear in our upgraded combined ratio
guidance, as we continue to prioritise profitability over volume. This does,
however, mean that growth is running at the low end of our guidance and below
the level we delivered in the first half.

 

Alongside robust underwriting discipline, we have been working on a number of
initiatives. A key piece of this work is our new platform in Bermuda which
will support our expansion into the alternative risk transfer market. This
will allow us to drive growth whilst maintaining margin by using our existing
expertise to take advantage of new and evolving opportunities"

 

                                      30 September 2025  30 September 2024  % increase
 Insurance written premiums ($m)      4,670              4,625              1%

 Net insurance written premiums ($m)  3,927              3,792              4%

 Investments and cash ($m)            11,716             11,433             2%

 Year to date investment return       3.9%               4.7%

 Rate (decrease)/increase             (4%)               0%

 

 

Premiums

 

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

 

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

                                                                          (decrease)

                  30 September 2025           30 September 2024

                  $m                          $m                          %            %

 Cyber Risks      848                         924                         (8%)         (6%)
 Digital          186                         190                         (2%)         (2%)
 MAP Risks        763                         719                         6%           (1%)
 Property Risks   1,436                       1,401                       2%           (7%)
 Specialty Risks  1,437                       1,391                       3%           1%
 OVERALL          4,670                       4,625                       1%           (4%)

 

In Cyber Risks, persistent rate reductions in North America have occurred
since 2022 despite increasing frequency and severity of ransomware claims in
the market. At 1 July renewals we held prices flat. Cumulative rate change
across the division has trended upwards during Q3 as a result.  However very
competitive market conditions in North America means that profitable growth
continues to be challenging.

 

With comparatively stronger pricing and greater scope for new business, our
European cyber book is performing ahead of plan. We expect strong growth to
continue internationally in what remains an underpenetrated market.

 

MAP risks delivered the strongest growth performance for the Group at Q3 as
demand for many products within the division continues. Written predominantly
on our Lloyd's platform, premiums in the portfolio have increased by 6%. Rates
are strong in several areas across the book, and we expect to maintain this
performance in Q4.

 

The Property Risks book has grown by 2% despite the challenging rate
environment seen during 2025. Conditions remain very competitive, however the
flexibility provided by our three platform model has allowed us to focus
growth efforts where rates are most adequate.

 

As expected, growth has reduced within Specialty Risks since Q2. Earlier in
the year, D&O began to show signs of stabilisation however, the pricing
environment remains very competitive.  We continue to derisk in social
inflation exposed lines within healthcare however an increase in capital
markets activity has seen our M&A book exceed plan.

 

 

Claims

 

Natural catastrophe claims were well within the margins held following a below
average hurricane season.

 

Attritional claims performed better than expected in H1. The experience in Q3
returned to a more normalised level reflecting the very active claims
environment.

Capital

 

We have been developing our business model to be able to take advantage of new
and evolving areas, which we see as having attractive long term growth
potential. Part of this is planned investment of $500m of capital to establish
a presence in Bermuda.

 

Our year-end capital position will be provided when we report our 2025
year-end results. As we have demonstrated through our successful share buyback
programmes in 2024 and 2025, we remain committed to returning capital to
shareholders which cannot be deployed to support profitable growth.

 

Insurance finance income and expense (IFIE)

 

The insurance finance expense was $169m after nine months of the year.  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
since half year, as well as the unwind of discounting credit.

 

Investments

Our portfolio allocation was as follows:

 

                                            30 September 2025      30 September 2024
                                            Assets     Allocation  Assets     Allocation
                                            $m         %           $m         %
 Cash and cash equivalents                  726        6.2         1,075      9.4
 Fixed and floating rate debt securities
 -     Government issued                    4,316      36.8        4,392      38.4
 -     Corporate bonds
 -     Investment grade                     3,978      33.9        3,769      33.0
 -     High yield                           722        6.2         660        5.8
 -     Securitised
 -     Collateralised loan obligations      579        4.9         255        2.2
 Syndicate loans                            22         0.2         29         0.3
 Derivative financial assets                5          0.1         13         0.1
 Core portfolio                             10,348     88.3        10,193     89.2
 Equity funds                               458        3.9         314        2.7
 Hedge funds                                767        6.6         721        6.3
 Illiquid credit assets                     143        1.2         205        1.8
 Capital growth assets                      1,368      11.7        1,240      10.8
 Total                                      11,716     100.0       11,433     100.0

 

Beazley's investment portfolio returned $458m, or 3.9%, after nine months of
the year. An improvement in macroeconomic data over the year and easing of
trade related tensions created a favourable environment for risk assets.
Equity indices rose and corporate bond spreads continued to compress.
Expectations of a loosening monetary policy drove short dated treasury yields
lower, which was positive for fixed income.

 

As at 30 September, the average yield of the fixed income investments is 4.0%
with an average duration of 1.7 years.

 

 

A conference call for analysts and investors will be held at 8am GMT on
Tuesday 25 November

 

Dial in details for analysts:

 

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

UK Toll Free: 0808 109 0700

 

Webcast Link for all other participants:

 

https://brrmedia.news/BEZ_Q325 (https://brrmedia.news/BEZ_Q325)

 

 

A capital markets session for analysts and investors will be held at 1pm GMT
on Tuesday 25 November

 

Webcast Link:

 

https://brrmedia.news/BEZ_CMD25 (https://brrmedia.news/BEZ_CMD25)

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

 

 

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