Beazley Group posts growth in profit, premiums

The FTSE 250 company saw profit before tax rise 8% during the year to $284m (£194.3m), from $261.9m a year earlier.

That was off total revenue of $1.79bn, up 1% on the $1.77bn in 2014. Total expenses remained largely flat.

Its return on equity was 19%, up from 17% a year earlier, with gross premiums written increasing by 3% to $2.08bn.

Beazley's combined ratio also improved to 87%, from 89% a year earlier, while rate reduction on its renewal portfolio was stable at 2%.

Its prior year reserve releases also went up to $176.3m, from $158.1m, though the firm's net investment income was down to $57.6m, from $83m.

"Beazley increased both premiums and profits in 2015, delivering excellent returns for shareholders despite low investment returns and declining premium rates", said chief executive Andrew Horton.

"We see the recent mergers-and-acquisitions driven market consolidation as benefiting our business by increasing our attractiveness to the talented, entrepreneurial individuals on whom we rely for success", he added.

Horton also said he was delighted the company had completed the preparations to return its head office to London, and would be putting the proposal to a shareholder vote in March.

Beazley would pay a second interim dividend of 6.6p - up from 6.2p in 2014 - taking full year dividends for the year to 9.9p. A special dividend of 18.4p would also be paid.