Beazley GWP drops; maintains flat rate
Lloyd’s carrier Beazley reported flat gross written premiums (GWP) in the first quarter and said rates had also remained stable overall despite increased competitive pressures especially on catastrophe lines.
The carrier’s GWP fell slightly to $516 million in the quarter, compared with $518 million in the same period last year.
Beazley’s largest division, specialty lines, wrote $190 million which represented growth of 3 percent relative to the same period in the previous year. Political risk and contingency saw the highest growth, 21 percent, as GWP rose to $35 million in the quarter, compared with $29 million in the same period last year.
The reinsurance division wrote an increased portion of its business at the start of the year which resulted in 3 percent growth relative to the same period last year.
Premiums dropped by 22 percent in its life, accident and health division; the company said this was driven by the phasing of a significant renewal which happened in the second quarter. Marine and property premiums also fell by 4 percent and 5 percent respectively.
The company noted that, historically, Latin America has not been a big source of business for Beazley but it said the recent appointment of Ricardo Ortega as head of business development in the region should create opportunities for the company through the Lloyd’s Brazil platform.
Andrew Horton, chief executive officer, said: "We were able to achieve rate increases in specialty lines, our largest business, and maintain flat rate overall in spite of increased competitive pressures, particularly in relation to short tail, catastrophe exposed, classes.
We also achieved a good top line performance with gross written premiums in the first quarter flat compared to Q1 2013 and we still expect to achieve moderate full year growth."
