Forecasts & Results
Beazley 1Q23 trading statement
Posted 12/05/2023 – Quick takes
Beazley plc has released a trading statement for 1Q23 ending 31st March 2023
Main highlights from the statement:
- Gross premiums written increased by 12% to $1,372m (Q1 2022: $1,229m)
- Net premiums written increased 24% to $1,069m (Q1 2022: $859m)
- Premium rates on renewal business increased by 10% (Q1 2022: 17%)
- Net income from investments of $104m as at 31 March 2023 (Q1 2022: loss of $92m)
- Combined ratio guidance remains unchanged at high 80s for 2023 full year
- They remain confident in their growth guidance of mid teens gross premium written and mid 20s net premium written for 2023 full year
Adrian Cox, Chief Executive Officer, said:
“The first quarter saw us deliver good headline growth in line with our expectations, underpinned by growth in property, where we are taking advantage of the excellent and continuing market conditions.
Our diversified business, together with our ability to adapt according to the underwriting pricing cycles, allow us to adjust as opportunities and challenges emerge.
We are positive in terms of our outlook for the first half and are confident of delivering our full year guidance.”
The group’s GWP and rate changes in 1Q23 are as follows:
Premiums
The performance to the end of March 2023 by business division is:
Despite the active catastrophe environment in the first three months of the year, the level of claims is within the held margins, and therefore they reiterate their high 80s combined ratio guidance assuming claims experience is as expected for the remainder of the year.
Alpha comment
This is an encouraging trading statement from Beazley highlighting continued growth, particularly in the property division (which includes the insurance and reinsurance book). The analysts’ call focussed on the impact of the Lloyd’s cyber war exclusions which have been adopted by much of the wider cyber market and therefore is not expected to lead to a drop in Lloyd’s cyber income. Despite news regarding an increase in ransomware attacks (since the relatively low level last year which led to Beazley reporting a combined ratio for cyber of just 79%), the Beazley book has not experienced an increase in claims in 1Q23. We are encouraged by the reiterated expectation of a combined ratio in the high 80s for 2023.
