14th Jul 2005 16:50
Beazley Group PLC14 July 2005 BEAZLEY INSURANCE COMPANY, INC RATED A- (EXCELLENT) BY A.M. BEST Rating Marks Further Step in Development of Beazley's US Business London, 14 July 2005 - Beazley Group, plc (BEZ.L) announced today that its U.S.admitted insurance subsidiary, Beazley Insurance Company, Inc, has been assigneda rating of A- (Excellent) by A.M. Best. The rating marks a further step forwardfor Beazley, which earlier this year became the first Lloyd's-based insurancegroup with a subsidiary licensed to underwrite insurance business on an admittedbasis throughout the United States. In announcing the rating, A.M. Best commented on the "favourable track record"of Beazley's Lloyd's syndicates and the "experienced management teams" at boththe syndicates and Beazley Insurance Company. It added: "The rating alsoacknowledges Beazley Insurance Company's quality balance sheet, which isunencumbered by debt and any prior year reserve liabilities." Welcoming the rating, Andrew Beazley, Chief Executive of the Beazley Group,said: "Our strategy in the United States has two elements. We continue to writelarge scale US risks on a surplus lines basis in London, as we have done fornearly 20 years. But we are also developing a significant local US underwritingcapability to write small and mid-size specialty lines risks and high valuehomeowners' property risks. "Our admitted carrier, Beazley Insurance Company, will focus on the small andmid-size specialty lines business that would not normally be underwritten atLloyd's. We believe there is a substantial opportunity for an insurer thatbrings seasoned underwriters to this segment of the market. We have assembled ateam of underwriters with an average in excess of 15 years' experience in theinsurance business. At many insurers, underwriters cut their teeth on small andmid-size risks. Not at Beazley." Beazley has long been one of the major underwriters of US business in the Londoninsurance market, writing not only property business but also holding aparticularly strong position in specialty lines such as D&O, E&O and employmentpractices liability insurance. The firm's current US strategy originated in2002, when Beazley went public on the London Stock Exchange, raising funds forthe controlled expansion of its business. Subsequent steps included: • July 2004. Beazley USA, the group's wholly owned US-based underwritingmanagement company, hires Kingsley Flynn to head its property group in theUnited States. Mr. Flynn and his team are focusing initially on high valuehomeowners' business in the hurricane-prone states of Florida, Georgia, SouthCarolina and North Carolina. The US property group is headquartered in PonteVedra Beach, Florida. • August 2004. Beazley USA hires Nicholas Bozzo to head its US specialtylines group, headquartered in Farmington, Connecticut. The firm has sincerecruited senior insurance professionals to serve as regional underwritingmanagers and product line managers for specialty lines business. • November 2004. Beazley agrees to purchase Omaha Property & CasualtyInsurance Company, an admitted insurer in all fifty US States, from the Mutualof Omaha. The company has since been renamed Beazley Insurance Company, Inc. A$190 million rights issue in the UK raised funds to support the acquisition andBeazley's broader growth strategy. The acquisition closed earlier this year. Beazley USA now has employees in six offices in the United States, and plans tobuild a nationwide network over time. "Our goal," said Nicholas Bozzo, Head ofUS Specialty Lines, "is to provide unrivalled client service, working with wellrespected local brokers, region by region. We want to be known as the mostresponsive insurer in the market." - END - Contact: Jeff Koenig: (860) 677 3701 Nicholas Bozzo: (860) 677 3703 William Pitt (HawkPartners): (203) 977 7771 Notes to editors: Background to Beazley Beazley Group, plc (BEZ.L), founded in 1986, is the parent company of specialistinsurance businesses with operations in the UK and the United States. Beazleymanages two Lloyd's syndicates (Syndicate 2623 and Syndicate 623) with aggregateunderwriting capacity in 2005 of £742m ($1.4bn). Both syndicates are rated A byA.M. Best. The Beazley syndicates focus on specialist risk business in selectedmarkets, including professional indemnity, commercial property, marine,reinsurance, and personal lines. Beazley is a market leader in many of itschosen segments, such as professional indemnity insurance for US law firms andfor US architects and engineers. Beazley is quoted on the London Stock Exchange. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Beazley