Beazley publishes Q1 2024 results

Beazley publishes Q1 2024 results | Insurance Business Asia

Insurance News

Claims data matched projected estimates

Insurance News

By
Kenneth Araullo

In its latest trading update, the specialist Beazley said it has demonstrated a consistent start to 2024.

For the quarter ending March 31, 2024, Beazley saw its gross written insurance premiums climb to $1,483 million from $1,384 million in the same period last year, a 7% increase. Net written premiums also rose significantly by 11% to $1,239 million from $1,118 million the prior year.

The firm’s investment and cash positions significantly strengthened, with holdings reaching $10,827 million, up from $9,080 million at the end of March 2023, showing a 19% improvement. The year-to-date investment return remained stable at 1.2%.

Beazley’s rate environment also noted a modest increase of 1% this year, a decrease from the previous year’s 10% rate increase.

The performance across Beazley’s business divisions was varied. The cyber risks division saw a reduction in premiums, down 10% to $253 million from $280 million, primarily due to changes in premium recognition patterns linked to more distribution partnerships.

Conversely, the digital division saw an increase, with written premiums up 11% to $63 million. MAP risks, on the other hand, maintained steady with no year-over-year change in premiums at $261 million.

Property risks experienced significant growth, up 26% to $451 million from $357 million as the company captured more business in the E&S market. Specialty Risks also saw growth, with premiums rising 6% to $455 million from $429 million.

The company’s claims experience for the quarter was in line with expectations, with natural catastrophe activity remaining within the set margins reserved for such events.

The investment portfolio displayed a diversified allocation, with cash and cash equivalents increased to $1,016 million. The largest portion of the portfolio was in fixed and floating rate debt securities, with government-issued securities at $4,289 million and corporate bonds totalling $3,683 million for investment grades, plus $625 million in high yield.

Meanwhile, the core portfolio accounted for 89.1% of total assets, slightly down from the previous year.

The investment return for the first quarter was bolstered by a $126 million gain, driven by strong returns in equity, credit, and hedge fund investments. Despite an increase in risk-free yields leading to more modest returns from fixed income investments, the current yield on the fixed income portfolio was a solid 5.1%.

Adrian Cox, Beazley’s chief executive officer, remarked on the firm’s “solid start” that demonstrated its ability for continued growth.

“We are confident of delivering our gross growth guidance for the year of high single digits. We remain optimistic about the outlook for our business in 2024 and beyond, focusing on continued, targeted growth and active capital management as the rate environment normalises,” he said.

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