Beazley’s Horton praises US growth to balance earnings drop

Beazley CEO highlights growth in US business and rise in gross premiums written in 2018 results despite depressed earnings as challenging market conditions take their toll.

The company’s gross premiums written rose 12 percent to $2.6 billion in 2018 from $2.3 billion a year earlier.

Its combined ratio improved to 98 percent from 99 percent the year before.

However, net investment income fell to $41m from $138m in 2017 and profit before tax was $76m in 2018 down from $168m in 2017.

Net premiums written rose 14 percent year on year to $2.2 billion from $1.9 billion in 2017.

Andrew Horton, chief executive officer, said: "Beazley saw strong growth in 2018 with gross premiums written rising 12 percent. Our US business has been growing extremely well and we underwrote more than a billion dollars of premium locally for the first time in the US last year. Although market conditions were challenging, depressing our earnings, we entered 2019 with positive premium rate momentum and higher interest rates that should deliver stronger returns going forward."

A statement in the report from chairman David Roberts said: “Profitability was impacted by underwriting losses in our property insurance and reinsurance business, which fed into a combined ratio for the group of 98 percent, as well as a sharply lower investment return. The company generated a return on average shareholders' equity of 5 percent.

“After 2017's exceptional catastrophe experience, 2018 was only slightly less eventful. There were two hurricanes in the US, Florence and Michael, and two typhoons in Japan, Jebi and Trami, and in November, California experienced massively destructive wildfires for the second year in a row.

“We are constantly mindful of the human cost of these traumatic events and the need to act swiftly to help communities and companies rebuild and recover. By year end we had disbursed $110m in funds to clients afflicted by 2018's natural catastrophes.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

White Mountains CEO bemoans 'tough fourth quarter' as profits dip

R&Q secures £100m for growth and to replenish liquidity

Year end and Q4 revenues rise for Willis Towers Watson

Natural catastrophe losses dent Aspen's Q4 2018 results

AXIS Re swoops for Swiss Re hire to expands strategic partners unit

Chubb fills newly created leadership role in Continental Europe

Zurich bolsters board of directors to drive insurtech innovation

RFIB hires new managing director for Americas

Download our whitepaper: 'Why Automation & AI Matters For Commercial Lines'