23 July 2020Insurance

Beazley enjoys growth but slips to $13.8m H1 loss due to COVID-19

Specialist Lloyd's re/insurer Beazley's first half 2020 results were dented by high volumes of claims arising from COVID-19, despite experiencing growth in all seven business segments.

Beazley reported a pre-tax loss of $13.8 million in H1 2020, compared with a pre-tax profit of $166.4 million in the same period in 2019.

Gross premiums written increased by 12 percent to $1.66 billion, compared with $1.48 billion in H1 2019.

The combined ratio for the first half of 2020 deteriorated to 107 percent from 100 percent in H1 2019.

The Lloyd's of London insurer estimated pandemic-related losses of $170 million net of reinsurance split between political, accident & contingency ($70 million) and marine, property and reinsurance ($100 million). However, stated that there is still uncertainty around how COVID-19 will impact liability lines of business.

Andrew Horton, chief executive officer of Beazley, said: "Beazley achieved strong premium growth of 12% in the first half of 2020, with three of our seven divisions achieving double digit growth. Rates on renewals continue to increase across the market with average rate increases of 11% seen across our business as a whole. Our investments returned 1.4% for the first six months against the backdrop of a volatile investment market."

"The first half of 2020 was defined by COVID-19 and claims arising from the pandemic have driven the combined ratio to 107%, with Beazley recording a loss before tax of $13.8m. Despite this we expect a combined ratio of around 100% should be achievable for the full year."

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
17 September 2020   The reinsurance industry spends too much time ‘looking in the rear-view mirror’ on pricing.
Insurance
22 September 2020   The revised estimate assumes a resumption to some form of normality in the second half of 2021.
Insurance
6 November 2020   Its CEO said the re/insurer has seen rate increases across all its divisions.