Beazley posts higher premium despite flat rates
Jump in profit amid growing demand for specialty cover across all markets
Global insurer Beazley recorded premium growth of 7% in its first half-year and a near doubling of profits, despite a “flat” rating environment.
“As expected, the upwards rating environment, or hard market, of recent years is moderating and our clear priority is maintaining rate adequacy, while continuing with active cycle management to benefit from market opportunities and a change in risk/reward ratios,” stated Beazley.
Profit before tax rose 99% in H1 to $728.9m from $366.4m, while insurance written premiums increased 7% to $3.12bn during the same period.
The insurer said its results reflect a growing demand for specialty insurance across all markets, including excess and surplus lines in the US, Europe and specialist classes underwritten at Lloyd’s.
According to the insurer, there were “attractive opportunities” internationally for cyber insurance, which was a “significant driver” of its 7% premium growth. This was helped by cyber rate stabilisation following reductions in 2023.
“This reflects the ongoing maturing of the cyber insurance market, which sees increasing price stability, better cyber resilience and awareness of the threat amongst businesses, leading to strong demand for both cybersecurity services and insurance,” stated Beazley.
It added that there was no material shift in ransomware claims, despite the increased frequency of such attacks.
Property premium grew by 25% in the first half, which CEO Arian Cox said was a vindication of the “strategy to grow in this increasingly specialist class”.
Beazley also reported strong demand in some of its specialty lines, such as environmental liability and its safeguarding business. But the insurer continues to be cautious over the D&O market, while adding that there are some nascent signs of plateauing rates.
“Nevertheless, we remain absolutely focused on ensuring rate adequacy after the challenging rating landscape of the last two and a half years,” stated Beazley.
Beazley also reported 14% growth in its small business distribution division, driven partly by the ongoing digitisation of its underwriting process.
