- Beazley
- 14 August 2025 13:05:10
Source: Sharecast
"The impact of 2% more caution on the combined ratio and 2% lower annual top-line growth gives low teen underlying cuts to outyear earnings, reflecting the high operational gearing as competition increases and margins normalise," RBC said.
"M&A could underpin organic growth that is becoming harder to achieve, potentially at a marginal cost to tangible NAV.
"Strong starting solvency underpins an unchanged view of $500m annual buybacks for total capital return of 11% on a 12-month view, which should provide good support to the shares."
The bank said its price target was being reduced with lower forecasts, equating to 1.65x book for 17.5% average adjusted return on equity.
On Wednesday, Beazley posted a drop in first-half profit and cut its full-year premium growth guidance to low to mid-single digit, from mid-single digits in April.
RBC Capital maintained its ‘outperform’ rating on the stock.