Forecasts & Results
Beazley plc has released its group result for the 2023 financial year
Posted 07/03/2024 – Quick takes
Beazley plc has released its group result for the 2023 financial year.
Group headline figures
| 2023 | 2022 | |
| Insurance written premium | $5,601.4m | $5,246.3m |
| Net insurance written premium | $4,696.2m | $3,772.4m |
| Insurance service result | $1,251.0m | $822.9m |
| Net investment return | $480.2m | -$179.7m |
| Positive prior year development | $109.8m | -$54.9m |
| Profit before tax | $1,254.4m | $584m |
| Group combined ratio (undiscounted) | 74% | 82% |
Group highlights
- Insurance written premiums increased by 6.8% to $5,601.4m (2022: $5,246.3m)
- Record profit before tax of $1,254.4m (2022: $584.0m), driven by a strong investment return of 4.9% and insurance service result of $1,251.0m which is a 52.0% improvement (2022: $822.9m)
- Group undiscounted combined ratio improvement of 8 points to 74% (2022: 82%)
- Group Return On Equity of 30%
- Group rate increase of +4% (2022: +14%)
Adrian Cox, Chief Executive Officer, said:
“I am delighted with our record $1.25 billion profit which enables us to launch a share buyback programme of up to $325m. The strength of Beazley’s expertise-led underwriting and claims management was the driver of the excellent combined ratio we achieved in 2023. We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well positioned to continue successfully growing our business and I remain confident that Beazley will see strong, long-term performance.”
Divisions headline figures
| Cyber Risks | Digital | MAP Risks | Property Risks | Specialty Risks | |
| Insurance written premium | $1,184.3m | $227.5m | $964.3m | $1,351.9m | $1,873.4m |
| Segment result | $307.4m | $59.4m | $158.2m | $354.7m | $415.3m |
| Combined ratio | 68% | 68% | 79% | 65% | 73% |
| Rate change | -5% | +1% | +6% | +22% | -1% |
Divisions commentary
- Cyber Risks – The growth in the portfolio was mainly from the international cyber market, particularly European business. The rate reduction for the year of -5% follows a cumulative rate increase of +271% since 2018 with increased competition in the market.
- Digital – The small business division increased the number of products offered driving growth.
- MAP Risks – The division saw premium reduction as premium previously fronted by Beazley syndicate 3623 moved into Beazley syndicate 5623 (supported by private members). The division saw increased demand for insurance as geopolitical uncertainty continued throughout 2023.
- Property Risks – The property team experienced the highest rate increases of all divisions with terms and conditions also tightening significantly. The claims ratio reduced by 25 points, resulting in the lowest divisional combined ratio of 65%.
- Specialty Risks – The premium income was relatively flat as the portfolio diversified and rate reductions within D&O were balanced across the other sub-divisions.
Alpha Comment
Beazley announced a few weeks ago that the year end figures promised a good combined ratio. The report combined ratio of 74% is impressive, even better than expected. It is promising to see that all divisions across the portfolio are contributing to this strong result. Although cyber and specialty experienced rate reductions in 2023, the remarkable cumulative rate increases of +271% and +146% respectively give confidence that rate adequacy continues. Furthermore, Beazley’s ability to adjust the portfolio to take advantage of better rated business is very encouraging. The low combined ratios should result in positive year of account results for private members who support the Beazley syndicates 623, 5623 and 6107.
