Beazley plc results 2024
Beazley released its results for the group to the LSE yesterday morning. The following are extracts from the Press Release which we hope will be useful to Members.
The full Press Release is available here and an accompanying presentation is available here
Beazley plc results for period ended 31 December 2024
• Highest ever full-year result of profit before tax of $1,423.5m (2023: $1,254.4m)
• Insurance written premiums increased 10% to $6,164.1m (2023: $5,601.4m) in a stable underwriting environment
• Undiscounted combined ratio of 79% (2023: 74%)
• Result includes investment income of US$574.4m +5.2% return
• Initial estimate of Californian Wildfires in the region of $80m
• Rates on renewal business on average decreased by 0.5% (2023: increased by 4.3%)
• Mid-80s undiscounted combined ratio guidance for FY 2025
• Reserve releases of 2.9% of net revenue and stay within preferred range of 80th to 90th percentile
Adrian Cox, CEO comment in the introduction to the results:
Outlook
"We do operate in a cyclical market and one where conditions can change quickly. The industry continues to navigate an active claims environment, including recent natural catastrophe activity which could result in the pricing outlook evolving. However our central expectation at this time is that prices will continue to soften this year, and we are forecasting mid-single digit growth for 2025. Accounting for the provision already made in respect of the January 2025 Wildfires, we expect to deliver a mid-80s undiscounted combined ratio."
Other extracts:
Property premiums increase of 26% "despite a reduction in rate increases to 1.3%, down from the very notable increase of 22.4% seen in 2023." Reduction of secondary peril exposures. Long term growth expected with focus on US E&S. "Individual regional markets that saw significant impacts from natural catastrophe activity, such as the Southeastern US, Canada and Europe, are all now experiencing stronger rating increases."
Cyber "strong COR of 64.4% in a year of moderating pricing"..."rate environment remains adequate." Beazley's model of cyber accumulation risk is available on their website demonstrating their market leadership in this class. Expect to see demand-led growth, particularly internationally. Rates (5.5%)
Specialty classes combined ratio (COR) of 79.2%. "financial markets showing signs of improving - this will increase demand across several of our liability products including D&O and M&A". Rates +1.4%.
MAP classes (marine, aviation, political risks) the Baltimore Bridge disaster has led to a "somewhat more stable rating environment for marine liability". Beazley is investigating "insurance solutions for the development of nuclear fusion."..."Demand remains consistently strong in political risk and political violence". Rates +1.3%.
Conclusion - an excellent set of results by the group with a promising outlook for this year notwithstanding some competition beginning to emerge. Beazley's shares hit an all-time high thanks to the low estimate for the wildfires and the record profit.