Beazley nine-month gross premiums written up 2%

Lloyd’s of London insurer Beazley posted a 2% rise in gross premiums written in the first nine months of the year, mainly on the back of strength in its specialty lines division.

Premiums rose to $1.67bn from $1.64bn in the same period a year ago. Gross premiums written in the specialty lines division increased to $824m from $748m, while premiums in Life Accident and Health were up 3% to $106m and in Reinsurance, they rose 2% to $198m. The three other divisions – Marine, Political Risk & Contingency and Property – all saw declines.

Rates on renewal business were down 2% across the portfolio and Beazley said it continues to experience a highly competitive market environment particularly in respect of large risk, catastrophe exposed classes of business.

As a result, it plans to rebalance its portfolio in favour of smaller risks where it reckons it can achieve more sustainable margins.

Chief executive officer Andrew Horton said: “We have maintained our momentum in the third quarter, driven principally by the strong performance of our specialty lines division, where premiums grew by 10% compared to the equivalent period last year. We continue to attract talented underwriters to Beazley in London, the US and continental Europe."

The company said that claims notifications so far in 2016 have been in line with its expectations. Last month, Hurricane Matthew made landfall along the south-eastern coast of the United States but at this stage is not expected to be a very substantial insured loss, Beazley said.

At 0927 GM, the shares were up 0.2% to 380.40p.