Forecasts & Results
Beazley’s 1Q24 trading statement
Posted 29/04/2024 – Quick takes
Beazley plc has released its trading statement for 1Q24 ending 31st March 2024
Main highlights
- Insurance written premiums increased by 7% to $1,483m (Q1 2023: $1,384m)
- Net insurance written premiums increased by 11% to $1,239m (Q1 2023: $1,118m)
- Premium rates on renewal business increased by 1% (Q1 2023: 10%)
- Investment income of $126m or 1.2% year to date (Q1 2023: $104m or 1.2%)
- Combined ratio guidance for the year remains at low 80s on an undiscounted basis
- Gross IWP growth guidance for the year remains at high single digits
Adrian Cox, Chief Executive Officer, said:
“It has been a solid start to the year where we have demonstrated our ability to continue to grow whilst exercising underwriting discipline. We are confident of delivering our gross growth guidance for the year of high single digits.
We remain optimistic about the outlook for our business in 2024 and beyond, focussing on continued, targeted growth and active capital management as the rate environment normalises.”
The group’s headline figures for 1Q24 are as follows:
The group’s premium income and rate changes by division are as follows:
Beazley also explained that their claims experience in the first quarter was as expected with catastrophe losses within their margin of reserves held.
Alpha comment
Beazley has started the 2024 year positively with strong top line growth for the overall group. Property Risks saw the largest growth of 26% year on year as Beazley’s new E&S carrier launched on 1st January 2024, whilst Cyber Risks saw a 10% year on year decrease in income, primarily driven by different premium recognition patterns. Specialty saw 6% growth, but as Beazley has a larger weighting towards longer tail classes than other London listed managing agents, we would expect rate increases to more pronounced for the full year. They have suggested a combined ratio in the low 80s on an undiscounted basis for the full year 2024, which is very positive.
