Property rates up 29% as Beazley enjoys Q1 premium growth

Beazley increased gross written premiums by 12% in the first quarter of 2023 to $1.37bn after pushing through average rate rises of 10% at renewal.

Property rates were up 29% to drive 56% growth in the line’s premiums to $347m for the quarter.

Specialty risks, which account for the largest share of group premium at $428m, recorded a 6% drop in gross premiums with rates unchanged after Beazley reduced its appetite in favour of “more attractive” classes.

Beazley said the specialty line remains challenged by competitive D&O ratings, ongoing social inflation and lack of IPO and M&A activity. But the insurer said it will target some areas, such as environmental liability, for growth.

The group’s cyber rates were up 4% in Q1 to help boost gross premiums by 24% to $280m. Beazley said cyber growth was particularly strong in Europe, despite more modest rate increases and applying war exclusions.

Beazley remains confident that gross premiums will close 2023 with growth in the mid-teens and with net written premiums up in the mid-twenties. New written premiums rose 24% in Q1 to $1.07bn.

The group’s combined ratio guidance remains unchanged at the high 80s for full year 2023.

Beazley also recorded a return to net income gains totalling $104m for Q1 2023 from a loss of $92m in the same period last year.

Adrian Cox, CEO at Beazley, said the group has a positive outlook for the first half of 2023 and is confident in meeting full-year guidance.

“The first quarter saw us deliver good headline growth in line with our expectations, underpinned by growth in property, where we are taking advantage of the excellent and continuing market conditions,” he said.

“Our diversified business, together with our ability to adapt according to the underwriting pricing cycles, allow us to adjust as opportunities and challenges emerge,” he added.