Beazley hit by higher claims as business increases
Beazley suffered higher claims in the first quarter of 2019 as the insurer posted strong business growth.
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The Lloyd's of London insurer said gross written premiums for the three months to the end of March rose 16% to $731m (£562m). Rates on renewal business increased 3% and investment returns rose 2%.
Growth was driven by Beazley's specialty lines division, where premiums rose to $200m from $161m a year earlier. Cyber and executive risk contributed $19m of extra premiums to reach $159m.
Beazley said the rise in claims it experienced during 2018 continued in 2019. It has strengthened reserves in some parts of its short-tail business related to typhoon Jebi, the Woolsey fire in California and some US trucking business in the marine division. The reserve increases are likely to offset releases from other businesses in the first half.
Andrew Horton, the company's chief executive, said: "Beazley started 2019 very positively from a premium growth perspective. However, our marine, property and reinsurance businesses continued to be impacted by higher than normal levels of claims."
The FTSE 250 company's shares fell 0.8% to 558p at 0846 BST.