Beazley sees significant growth despite subdued claims activity
Specialist re/insurer Beazley has claimed what it described as 'significant' gross premium written (GPW) growth across several lines of its business despite subdued claims activity in the first half of 2016.
Beazley reported its GPW increasing by 2 percent to $1,124.1 million for the period ending June 30 2016, compared to $1,099.7 million for the same period in 2015.
Among Beazley's lines of business to experience growth was its US healthcare team, which operated in a highly regulated environment, where financial and reputational costs of error can be high.
The US environmental business also grew, due to moves by major competitors to reduce their exposure to certain lines of environmental business.
Beazley's marine and property divisions also grew as they brought in talent from underwriting teams. In May, Beazley expanded its fine art, specie and jewellers' block underwriting capabilities through the appointments of underwriters, Mark Bosshard and Scott Sellick.
Its pre-tax profit for this period decreased by 3 percent to $150.2 million from $154.5 million, the figure from last year.
The profitability of Beazley's underwriting has declined slightly, comparing a combined ratio of 90 percent for this year to 86 percent for the same period last year.
Beazley saw fairly subdued claims activity for the first half of 2016, despite a slight uptick in the second quarter.
In insurance, Beazley suggests that this subdued claims experience is a double edged sword, as it also encourages price competition.
Andrew Horton, chief executive officer at Beazley, said: “Our business in the US continued to grow strongly in the first half of the year, partially offset by continued premium rate declines for much of the large risk business we underwrite in London.
"The global attractiveness of Beazley to talented underwriters with entrepreneurial flair was very clear. We welcomed 36 new underwriters in the first half across a wide range of disciplines, including healthcare, environmental, marine, and fine art and specie."
