Annual profits top $1bn at Beazley

Beazley announced plans to return cash to shareholders on Thursday, after annual profits at the Lloyds’ of London insurer topped $1bn.

The firm said pre-tax profits had surged 115% in the year to December end to a record $1.25bn. Insurance written premiums (IWP) rose 7% to $5.6bn, while net IWP were 24% higher at $4.7bn.

The combined ratio also improved, to 71% from 79% in 2022, and to 74% from 82% on an undiscounted basis.

As a result, the firm said it would now launch a share buyback programme of up to $325m.

Adrian Cox, chief executive officer, said: "The strength of Beazley’s expertise-led underwriting and claims management was the driver of the excellent combined ratio we achieved in 2023.

"We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well-positioned to continue successfully growing our business, and I remain confident that Beazley will see strong, long-term performance."

Looking to the current year, Beazley said it was targeting a low 80s undiscounted combined ratio, and high single digit gross IWP.

As at 1000 GMT, shares in Beazley were up 1% at 661.25p.

Jefferies, which has a ‘buy’ rating on the blue chip, said: "Beazley has reported $1bn of post-tax earnings a year earlier than we anticipated…while net investment income of $480m was ahead of consensus.

"We currently forecast a 79% undiscounted combined ratio for 2024, noting that Beazley tends to err on the side of caution with guidance."

Beazley, which has operations in Europe, North America, Latin America and Asia, manages seven Lloyd's syndicates.