23rd Jul 2021 09:44
(Alliance News) - Beazley PLC on Friday reported a surging interim earnings performance, swinging to a significant profit for the period from a loss a year previously.
The London-based insurer posted a pretax profit for the six months ended June 30 of USD167.3 million, after a USD13.8 million loss a year prior.
Beazley was one of the morning's best FTSE 250 performers in London, with shares trading 4.7% higher at 377.78 pence each.
Gross written premiums for the period increased 22% year-on-year to USD2.04 billion, with all divisions achieving rate rises. Reserve releases across all divisions supported a half-year combined ratio of 94% and the investment return achieved also was positive at 1.2% for the year to date, Beazley noted. A combined ratio below 100% indicates a profit on insurance underwriting.
"I am excited about the growth opportunities ahead. Our capital base remains strong and we are well placed to support an ambitious growth plan at similar levels to 2021," commented Chief Executive Adrian Cox.
In the first half, Beazley’s total reserve releases were USD95.7 million, up 63% from the prior year period. Meanwhile the insurer's investments returned USD83.6 million, or 1.2%.
Beazley did not declare an interim dividend although re-emphasised its commitment to a dividend payment at year end.
Looking ahead, the company said that the premium exposure growth which accelerated in the second quarter against consistently good rates is a "sign of the strength" in its strategy. Current expectations of annual percentage growth in the mid-20s gross of reinsurance and mid-teen digits net of reinsurance remain the same, Beazley said.
"In the midst of another turbulent year, we are positive that through the hard work and diligence of our colleagues we can deliver on our ambitions to build profitable growth in markets where we demonstrate value, instigate constructive change and build long-term collaborative relationships with our clients and partners."
By Will Paige; [email protected]
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