- Group premiums up 7%
- Property premiums up 26%
- No change to estimates
London market insurance group Beazley (BEZ) posted an in-line first-quarter trading update and confirmed its full-year guidance for written premiums and costs.
The shares, which closed at an all-time high of 694p in March, continued to ease down 0.4% to 636p.
STRONG PROPERTY PREMIUMS
Insurance written premiums for the three months to the end of March increased by 7% to $1.48 billion driven by a substantial increase in property risks which offset lower premiums in the cyber division.
Property premiums jumped 26% year-on-year from $357 million to $451 million helped by higher rates and what the firm described as ‘exciting opportunities’ as the business moves into the Excess & Surplus market, where specialty risks are underwritten.
Specialty risk premiums rose a more modest 6% to $455 million, while MAP (marine, aviation and political) premiums were flat at $261 million and cyber premiums declined 10% against a strong year-ago quarter to $253 million.
First-quarter claims were as expected with natural catastrophe activity within the margins the firm holds in reserve for such events.
GUIDANCE MAINTAINED
For the full year, the firm continues to expect high single-digit growth in insurance written premiums and a combined cost ratio in the low 80% range.
‘It has been a solid start to the year where we have demonstrated our ability to continue to grow whilst exercising underwriting discipline’, commented chief executive Adrian Cox.
‘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, focusing on continued, targeted growth and active capital management as the rate environment normalises’, continued Cox.
