6th Nov 2020 12:14
(Alliance News) - Beazley PLC on Friday announced a significant rise in gross premiums after its third quarter of trading but warned of rising Covid-19 related claims if normality doesn't return later next year.
Gross written premiums for the nine months ended September 30 surged 16% year-on-year to USD2.53 billion from USD2.19 billion. Investments and cash climbed 15% to USD6.51 billion from USD5.66 billion.
Year-to-date investment return for the nine months ended September was 2.0%, down from 4.0% the prior year with a rate increase of 14% versus 6% year-on-year.
Beazley said it has seen growth in almost all of its divisions.
Looking ahead, Beazley said Covid-19 related claims may climb by USD50 million should there not be a return to "some form of normality" in the second half of 2021.
Back in September, it said its claims estimate for Covid-19 was USD340 million net of reinsurance, which it kept in place on Thursday.
Beazley said it expects third-quarter catastrophe claims to be USD80 million net of reinsurance.
Chief Executive Andrew Horton said: "We have seen strong, double-digit premium growth across our business as a whole so far this year, driven primarily by rate rises across all divisions. I am extremely proud of all Beazley employees who have shown commitment and resilience throughout this time whilst continuing to support our customers and deliver the excellent claims service we pride ourselves on.
"Pricing conditions are positive and we have the expertise and the capital in place to take advantage of these market conditions. We have great confidence in our ability to deliver mid-teens growth next year and strong shareholder returns in 2021 and beyond."
Shares in Beazley were up 1.4% at 309.40 pence in London on Friday afternoon.
By Anna Farley; [email protected]
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