Beazley sees growth despite rate increases

9th Nov 2009 07:02

Insurer and reinsurer Beazley has seen strong growth in premiums written this year, even after it pushed through rate increases.Gross premiums written in the first nine months of 2009 rose 45% to £861.9m from £595.4m in the first nine months of last year.Investments and cash have improved to £2,236m, up 31% from £1,705m at the end of September 2008. This represents an annualised return of 2.8% in the year to end-September, versus a negative annualised return of 1.1% in the corresponding period of last year.The company said underwriting conditions have been favourable across the portfolio with rate increases averaging 4%, whereas in the same period last year they dipped 7%.The rate increases have been juiciest in the group’s catastrophe insurance business.‘We have also seen favourable claims developments in our speciality lines, marine and reinsurance businesses where we have been able to continue to make substantial reserve releases. These have been offset by an increased number of claims on the political risk and contingency portfolio resulting from the economic downturn,’ said Andrew Horton, chief executive officer of Beazley.