5th Feb 2021 08:25
(Alliance News) - Beazley PLC on Friday reported a loss for 2020 but said it saw "strong" premiums growth and is confident of a return to dividends in the year ahead.
Shares in Beazley were up 14% at 366.80 pence in London on Friday, making it the best performer in the FTSE 250.
The London-based insurer reported a pretax loss for 2020 of USD50.4 million, swinging from a USD267.7 million profit in 2019, which was driven by a combined ratio that deteriorated to 109% from 100%.
Any ratio below 100% means an insurer is making a profit from its underwriting.
"The global pandemic impacted a number of lines of business, most notably our contingency book where we quickly settled claims arising from cancelled or postponed events," the firm said.
On pandemic-related losses, the insurer reported USD340 million in first-party claims net of reinsurance in 2020, which it said was largely driven by its exposure to cancelled events.
Gross written premiums for the year surged 19% year-on-year to USD3.56 billion from USD3.00B billion last year, while net written premiums rose 17% to USD2.92 billion from USD2.50 billion. Net investments income decreased by 15% to USD188.1 million from USD263.7 million.
Beazley said it will not pay a 2020 dividend given its financial result combined with continued uncertainty surrounding Covid-19. It paid 12.3 pence in 2019. However, the company said it remains committed to the dividend strategy, and is focused on "profitability and returning to paying dividends in 2021."
"I am very positive about the year ahead. We have the capital strength to support our growth plans and look forward to a continued favourable rate environment and expansion of our specialist products globally. I am confident we can return to paying dividends during the course of 2021," said Chief Executive Andrew Horton.
By Zoe Wickens; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Beazley