Beazley's profit almost triples on higher rates
Beazley's year-on-year profit before tax almost tripled in the first half of 2019 amid higher rates, as it achieved double-digit premium growth.
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The specialist insurance business reported profit before tax of £166.4m for the six months ended 30 June, up 189% compared to the same period last year, as revenue jumped by 28% to £1.3bn after contributions from all six of its divisions climbed following rate increases.
Gross premiums written rose 12% to $1.5bn and the Lloyd's of London insurer upgraded its outlook for full-year premium growth to double digit from single digit.
"The past nine months have seen a material change in sentiment in our market as heavy claims in numerous lines of business have driven prices higher," Beazley said. "In September last year, our 2019 business plan envisaged rate rises well below what we have actually seen in the first half of the year. We accordingly see opportunities for growth in lines of business such as marine and aviation, as well as property, where margins now look healthier than they have been for some years."
Rate rises for marine and property came in at 7% an 9% respectively, with Beazley increasing its attention on these lines of business in order to benefit from improved pricing.
The company said it now plans to focus on growing its US business after stronger demand in Europe, Latin America and Asia. It said there is "considerable scope" for further growth in all of its main lines of business in the US.
Beazley's shares were up 1.40% at 544.00p at 0803 BST.