Beazley Pushes FTSE 100 Higher As Premiums Leap In Q1

Insurance giant Beazley was the highest riser on the FTSE 100 on Friday thanks to a positive reception to first-quarter numbers.

At 607.5p per share the company was dealing 3.6% higher in end-of-week trading.

Beazley said that gross premiums written increased 12% in quarter one, to $1.37 billion. Meanwhile net premiums written leapt 24% to $1.07 billion.

Premium rates on renewal rose 10% between January and March, though this was down from growth of 17% in the same 2022 period.

Beazley made net income from investments of $104 million as of the end of quarter one. It said that this represented a return of 1.2% “amidst significant financial market volatility.”

The business had reported a net loss of $92 million at the end of March 2022.

Up And Down

Gross premiums written for property risks leapt 56% in quarter one, to $347 million, while for cyber risks premiums increased 24% year on year to $280 million.

Increases in cyber-related premiums reflected strong growth in Europe as well as some favourable prior year premium adjustments, Beazley said.

However, gross premiums written for specialty risks dropped 6% year on year to $428 million. The insurer said that the segment “remains impacted by a number of headwinds including a very competitive rating environment in [directors and officers insurance] and ongoing social inflation within our healthcare book.”

It added that demand for its specialty risks products has been impacted by subdued IPO and M&A activity on the back of financial market volatility.

“Good Headline Growth”

Chief executive Adrian Cox noted that “the first quarter saw us deliver good headline growth in line with our expectations, underpinned by growth in property, where we are taking advantage of the excellent and continuing market conditions.”

He added that “our diversified business, together with our ability to adapt according to the underwriting pricing cycles, allow us to adjust as opportunities and challenges emerge.”

Beazley remains positive in the outlook for the first half, Cox said, and is confident in achieving full-year guidance.

In 2023 the company expects to increase gross premiums written in the mid-teens. It has also guided for net premium writtens to rise in the mid 20s.

Beazley added that its combined ratio guidance “remains unchanged at the high 80s” for the full year. This is despite what the firm called “[an] active catastrophe environment in the first three months of the year.”