Beazley’s 2016 results show better profits and solid growth

Investment returns boosted Beazley’s 2016 results but the company also enjoyed strong growth despite what the company’s CEO called highly competitive conditions in many markets.

The company made a pre-tax profit of $293.2 million last year, a 3 percent increase on the $284 million it made in 2015. Better net investment income of $83.1 million compared with $57.6 million in 2015 boosted this result. The company also posted prior-year reserve releases of $180.7 million in 2016 compared with $176.3 million in 2015.

Beazley’s gross written premiums reached $2.2 billion in 2016, a 6 percent rise on 2015. Its combined ratio increased to 89 percent, an increase on the 87 percent it posted in 2015.

Andrew Horton, chief executive of Beazley, said: "Beazley’s performance in 2016 was good across the board. Our increased profits were driven by a higher investment return, but the bedrock of our success remains our underwriting performance, which generated a combined ratio of 89 percent in 2016 despite highly competitive conditions in many of our markets.

“Overall premium growth doubled to 6 percent and we were able to develop a number of growth opportunities, particularly in the US, that enabled us to offset areas where market conditions dictated that we cut back.”

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