Beazley reports record first-half profit

8th Aug 2024 07:27

(Sharecast News) - Beazley announced a record profit before tax of $728.9m for the first half on Thursday, nearly doubling its $366.4 million profit from the same period last year.

The FTSE 100 insurer said the strong financial performance was driven by an increase in insurance written premiums, which rose to $3.12bn, up from $2.92 billion in the first half of 2023.

It also reported a significant improvement in its combined ratio, a key measure of underwriting profitability.

The undiscounted combined ratio fell to 81% from 88% in the previous year, while the discounted combined ratio improved to 77% from 84%.

Its return on equity for the period was 28% on an annualised basis, compared to 18% in the first half of 2023.

Additionally, Beazley's $325m share buyback programme, announced in March, was on track to be completed by the end of the year.

The company reaffirmed its full-year guidance, expecting an undiscounted combined ratio of around 80% and high single-digit premium growth.

"I am pleased to report a record first half profit of $728.9m," said chief executive officer Adrian Cox.

"Expertise in underwriting and active risk selection are key drivers of this strong result, even as the rating environment is moderating.

"Property grew 25% in the first half, demonstrating the success of our strategy to grow in this increasingly specialist class, focusing on the US E&S market."

Cox said the company continued to innovate in cyber, launching a "comprehensive, integrated cyber security and insurance" offering with Full Spectrum Cyber and Beazley Security.

"When faced with the world's largest ever IT outage, Beazley's approach to underwriting cyber risk was tested and proved to be highly resilient.

"We see opportunities in the remainder of the year and are confident in delivering on our high single digit growth guidance.

"We are also pleased to confirm that we have improved our undiscounted combined ratio guidance for the full year to around 80%."

Reporting by Josh White for Sharecast.com.