29th Apr 2024 11:36
(Alliance News) - Insurance premium prices are expected to remain "attractive" for Beazley during 2024, analysts on Monday said, after the firm delivered an in line trading update.
Shares in Beazley rose 1.7% to 649.00 pence in London on late Monday morning.
Beazley is a London-based specialist insurance underwriter, managing six Lloyd's of London syndicates.
On Monday, it said insurance written premiums rose 7.2% to USD1.48 billion in the three months to March 31 from USD1.38 billion a year before. Net insurance written premiums were up 11% to USD1.24 billion from USD1.12 billion.
Premium rates on renewal business were up 1% on year in the first quarter of 2024, compared to a 10% improvement in the first quarter of 2023.
Beazley said guidance for its combined ratio in 2024 remains a low 80s percentage on an undiscounted basis. It was 74% in 2023, down from 82% in 2022. Any combined ratio below 100% indicates a profit on underwriting, so the lower the better.
Also looking ahead, Beazley said it still expects insurance written premium growth of a high-single-digit percentage in 2024.
"Overall, claims experience for the first quarter is as expected. Total natural catastrophe activity so far this year has been within the margins we hold in our reserves for such events," Beazley said.
Analysts at Panmure Gordon said insurance written premiums were in line with expectations and guidance of high single digit growth.
Net insurance contract written premiums achieved a faster growth rate, as per guidance, the broker remarked.
At the segmental level, Cyber lines shrunk by more than Panmure expected but the broker noted management said this is due to change in premium recognition following changes in distribution.
Panmure noted pricing has generally softened, as it had expected, with overall rates up just 1%.
"The key point here is that prices remain attractive from the insurers perspective, and we think this will be the case over [2024]," Panmure commented.
The broker suggested a "material" reduction in prices is required before "it becomes a concern."
Panmure Gordon reiterated a 'buy' rating on Beazley.
By Jeremy Cutler, Alliance News reporter
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