Beazley admits 'disappointing' 2020 results but bullish on outlook
Specialist Lloyd’s insurer Beazley admitted it was disappointed with its results for 2020, having swung to a loss for the year, after recording a comfortable profit in 2019. Chief executive Andrew Horton, however, offered a "very positive" outlook for the year ahead citing favourable rate rises across most of its business lines.
The group reported a pre-tax loss of $50.4 million in 2020, driven by a combined ratio that deteriorated to 109 percent due to heightened claims activity in many lines of business. In 2019, Beazley generated a profit of $267.7 million and a combined ratio of 100 percent.
Gross premiums written for 2020 increased by 19 percent to $3.56 billion, compared with $3 billion in 2019.
Beazley's chairman David Roberts said that while these results were rather "disappointing", the company "enters 2021 on a firm footing to deliver long-term growth across a diversified portfolio and [the] board is determined to resume delivery of consistent, market-leading returns".
Its chief executive Horton highlighted that the company delivered a third year of double digit premium growth in 2020, supported by rate rises across most of its divisions, and also achieved strong investment returns despite volatile conditions.
Commenting on the 2021 outlook, he said: "I am very positive about the year ahead. We have the capital strength to support our growth plans and look forward to a continued favourable rate environment and expansion of our specialist products globally.
"I am confident we can return to paying dividends during the course of 2021."
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