Insurer Beazley posts drop in full-year profits

Insurer Beazley reported a drop in full-year profit on Thursday as it took a hit from investment losses.

In the year to the end of December 2022, pre-tax profit fell 48% to $191m.

Beazley pointed to the fact that the energy price spike and rising inflation had caused central banks to hike interest rates. This led to mark to market losses in its fixed income portfolio, resulting in an investment loss of $179.7m.

Gross premiums written rose 14% to $5.3bn and the insurer's combined ratio improved to 89% from 93% a year earlier. A level below 100% indicates an underwriting profit.

Chief executive Adrian Cox said: "Despite a challenging geopolitical environment and mark to market investment losses we returned a profit before tax of $191m.

"Our diversified book of business enables us to redeploy capital to areas where we see the most attractive growth prospects. After raising equity in November, along with a solid January renewal season, we continue to lean into the opportunity we are seeing in the property market whilst executing on our cyber growth plans."