Beazley posts better-than-expected combined ratio at half-year stage

Beazley edged past forecasts with its interim results, bumping up its pay-out as a result, but the company's boss sounded a very realistic note when discussing the outlook.

The insurance underwriter posted a combined ratio of 90% (Numis: 91%) which drove a 6% increase in profits before tax for the six months to 30 June of $158.7m (Numis: $155m).

On a per share basis, earnings rose 17% to 20.2p.

Net investment income was ahead from $62.7m in the comparable period of the year before to $79.4m.

Meanwhile, gross written premiums increased by 2% to $1,149.3m. However, at $83.4m prior-year reserve releases were ahead of the 2016 number of $77.4m (Numis: $75.0m).

At the interim stage of the year, the firm's dividend was bumped up from 3.5p to 3.7p.

In terms of the outlook, company boss Andrew Horton described then current market conditions as "not conducive to growth", but said the underwriter was capable of mid-single digit growth and of remaining profitable.

An absence of any "market-turning catastrophe events (which would of course generate sizeable short term losses)", would only compound the challenge, he added.

Nonetheless, "We will not sacrifice profitability for growth, which means that we will continue to walk away from underpriced business. We will also continue to invest in the skills and infrastructure needed to succeed in any rating environment," he said.

-- More to follow --