Beazley expects up to $175m hit from Helene and Milton hurricanes

6th Nov 2024 07:37

(Sharecast News) - Insurance group Beazley has reiterated its profitability guidance for the full year after a solid third quarter, as it estimated a hit of up to $175m from Hurricanes Helene and Milton.

Despite a "volatile claims environment", the company reported insurance written premiums of $4.63bn by the end of September, up from $4.33bn on the same date last year.

Investments and cash were up 15% at $11.43bn, while premium rates on renewal business were flat as expected, compared with 5% growth last year.

Meanwhile, "favourable" financial market conditions drove an investment portfolio return of $513m of 4.7% over the year to date, as the company benefitted from increased exposures to equities and high yield credit.

Beazley offered its initial calculation of net exposure to Hurricanes Helene and Milton, estimating that the combined impact would be somewhere between $125m and $175m.

"Taking this range into account, as well as claims experience across the group year-to-date, we maintain our undiscounted combined operating ratio guidance of around 80% for 2024. This is based on average catastrophe experience for the remainder of the year," Beazley said.