Source: Sharecast
Insurance written premiums increased 2.04% year-on-year to $3.18bn, driven by continued expansion in its cyber and property lines, while pre-tax profits fell 45% to $502.5m, reflecting higher claims activity and a less favourable investment backdrop.
The FTSE 100-listed group's undiscounted combined ratio deteriorated to 84.9% from 80.7% a year earlier, and its insurance service result dropped 12% to $493.7m. Net assets per share improved 11% to 560p, as did net tangible assets per share, which came in at 536.1pp. Beazley also reported a 1% increase in net insurance written premiums to $2.6bn.
Beazley, which said in April that gross insurance written premium growth guidance remained at mid-single digits, also dropped its FY premium growth guidance to low-to-mid single digits, in order to reflect current market conditions.
However, analysts at Keefe, Bruyette & Woods noted: "Whilst the market will likely see today's top-line guidance change as disappointing, we think lower growth figures coupled with a strong Solvency 2 ratio support our view that investors should continue to expect Beazley to return material amounts of capital going forward."
Reporting by Iain Gilbert at Sharecast.com