6th Feb 2020 09:12
(Alliance News) - Insurer Beazley PLC on Thursday reported it more than doubled its annual profit on a sharp rise in investment income and growth in premiums written.
In 2019, pretax profit surged to USD267.7 million from USD76.4 million. Gross premiums were 15% higher at USD3.00 billion from USD2.62 billion, with net premiums rising 11% to USD2.50 billion.
Elsewhere, net investment income was six-times higher in 2019, at USD263.7 million, from USD41.1 million the year prior.
Revenue, which predominately includes net earned premiums and investment income, was 22% higher year-on-year at USD2.64 billion from USD2.16 billion.
Beazley upped its full-year payout by 5.1% to 12.3 pence per share from 11.7p, in line with its target of annual dividend growth between 5% and 10%.
Beazley's combined ratio came in at 100% compared to 98% in 2018.
The combined ratio is a measure of an insurer's operating performance, and is a ratio of total costs to total net earned premium. Only a ratio under 100% indicates an underwriting profit.
The company said: "Although in absolute dollar terms we achieved an underwriting profit, our combined ratio rose to 100%, due in large measure to a far smaller prior year reserve release than in 2018.
"For a company with an exceptional track record of underwriting profitability, 2019 was a difficult year. However, although history never repeats itself exactly, we have seen market conditions similar to this in our 33 year history and know that early remedial action is critical in lines of business where the market as a whole has failed to make adequate provision for rising claims. We have been taking such action for several years now across a number of areas."
"These measures should result in an improved underwriting performance in 2020, with further improvement expected in 2021," Beazley added.
Shares in the company were 4.9% higher at 561.00 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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