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."