Beazley post record H1 profit, but combined ratio jumps

Insurance group Beazley said it remains on track to hit guidance after delivering record profits in the first half, though its combined ratio jumped.

Pre-tax profit totalled $366.4m in the six months to 30 June, up only slightly from $364.9m a year earlier, despite insurance written premiums rising 13% to $2.92bn.

Beazley said property insurance written premiums jumped 65% while cyber premiums rose 14%.

However, the company saw a sharp rise in insurance service expenses to $2.08bn fro $1.74bn a year earlier.

The combined ratio, a key measure of profitability calculated by dividing incurred losses and expenses by earned premiums (and therefore the lower the better), increased to 84% from 71%.

"We have confidence in the ability of our diversified platform, product and geographic strategy to continue to deliver and look forward to achieving mid-teens growth," said chief executive Adrian Cox.

He reiterated the group's guidance of a full-year combined ratio guidance in the "low eighties".