Beazley posts steady results in competitive market
Beazley has posted solid results for the first six months of 2014 in what it described as a “competitive” market. Its gross written premiums were stable compared with the same period the year before but its profits jumped substantially partly on the back of reserve releases.
The company’s gross written premiums were $1.07 billion for the year, a 1 percent increase on the same period the year before. Its pre-tax profit increased to $132.9 million compared with $82.3 million in the first half of 2013 – an increase of 61 percent.
Its combined ratio for the period was virtually flat at 90 percent compared with 89 percent a year earlier. It said rates on renewal business decreased by 1 percent, in contrast with a 1 percent increase a year earlier. Its reserve releases for the period were $72.9 million compared with $60.8 million in the first half of 2013.
Its net written premiums in the period increased substantially to $889.2 million compared with $758 million the year before – a 17 percent rise. It said this was mainly because of a change in the basis for estimating premiums ceded to proportional reinsurance. “This change reduces premiums ceded at the half year compared to 2013 but will have no effect at the full year,” the company explained.
Andrew Horton, chief executive officer, said: "Beazley performed well in the first half of the year, in a market that has become steadily more challenging. As we celebrate the tenth anniversary of our US operations, it is encouraging that we are currently seeing many of our best growth opportunities from our US based underwriters. At the same time we continue to attract talented underwriters to join Beazley on both sides of the Atlantic."
