24 July 2015 Insurance

Beazley profits and GWP jump in H1

Insurer Beazley posted a strong set of results for the first half of 2015, driven by solid performance in its US segment.

Its profits hit $154.5 million in the first half of 2015, compared with $132.9 million in the first half of 2014.

Beazley posted gross written premium growth of 2 percent to hit $1.09 billion in the first half of 2015, compared with $1.07 billion in the same period of the prior year, while its combined ratio improved 4 percentage points to 86 percent.

Growth was mainly driven by Beazley’s locally underwritten US businesses, where managed premiums rose to $296.9 million in the first half of 2015, compared with $238.2 million in the first half of 2014.

“We have found competitive conditions to be more favourable for smaller risks and the growth rate for our locally underwritten US business has accelerated in the first six months of 2015 to 25 percent, having grown 14 percent in the first half of 2014 relative to the first half of 2013,” said the insurer.

It added that its US life, accident and health division also contributed to growth following a long period in which uncertainty about the effects of the Affordable Care Act slowed growth in the business. Beazley underwrote $13.8 million in the first half of 2015, compared with $1.2 million in the same period of 2014.

The insurer’s largest division, specialty lines, posted growth in GWP of 15 percent to $441.9 million in the first half of 2015, compared with $385.3 million in the first half of 2014.

However, GWP in its reinsurance division fell to $159.5 million in the first half, compared $163.1 million in the first half of 2014.

Andrew Horton, chief executive officer of Beazley, said: “This was an excellent first half for Beazley with premiums and profits both rising. Premiums generated by our US underwriters rose by 25 percent, counterbalancing the highly competitive conditions elsewhere.

“In London, we are still witnessing downward pressure on rates for large risk and short tail classes of business, the effect of which has been masked by subdued claims activity. I am confident that our strategy and the composition of our portfolio will continue to position us well in the event of more challenging market conditions.”

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