FX gain aids Beazley profit surge

23rd Jul 2010 08:06

Specialist insurer and reinsurer Beazley delivered a big rise in profits during the first half despite intense competition and a series of catastrophe losses. Profit for the six months ended 30 June jumped to $115.5m from $30.1m a year earlier, partly thanks to an exceptional foreign exchange gain of $33.7m.Gross written premiums were 5% higher than the same time last year at $940.6m, driven by the growth at the firm’s reinsurance and specialty lines divisions. Net written premiums rose 21% to $621.1m.Beazley achieved a combined ratio of 89%, down from 90% in 2009, “in an environment largely characterised by flat or declining premium rates”. Premium rates were down by an average of 2% across the portfolio.Chief executive Andrew Horton says investment yields remain low, which should place upward pressure on premium rates, but capacity in all but a few lines is “plentiful”."At Beazley, we will respond to this softening market as we have done in the past, concentrating on business that remains profitable and being prepared to reduce our book where this is not the case. We have a strong business that is in good shape for this challenging environment."There’s an interim dividend of 2.4p a share, up from 2.3p last time.