Beasley supported full-year profit expectations after the underwriter reported a significant increase in insurance premiums in the first quarter of the year.
– Advertisement –
London-based Lloyd’s gross insurance premiums rose 12 percent to $1.37 billion in the first three months of the year.
This was supported by premiums in the firm’s property risk division, which rose 56% to $347 million, while they rose 24% in the cyber risk segment thanks to strong growth in Europe.
– Advertisement –
Beasley told investors this would offset the weaker rate hike and cost impact from the war in Ukraine.
– Advertisement –
Results: Lloyd’s of London underwriter Beasley reported that gross written premiums rose 12% to $1.37 billion in the first three months of the year.
Bezley recently completed a £350m share offering to help fund its presence in the cyber sector, which tends to have higher written premiums.
Beasley still expects gross insurance premiums to rise this year for “mid-teens,” while net insurance premiums are projected to rise by their “mid-20s.”
It also reiterated its full-year guidance on the high-80s combined ratio, a key measure of insurers’ profitability. Any figure below 100% means profit.
Beazley CEO Adrian Cox said: “In the first quarter, we posted strong overall growth in line with our expectations, underpinned by real estate growth where we took advantage of excellent and continuing market conditions.
“Our diversified business, together with our ability to adapt to underwriting price cycles, allows us to adapt as opportunities and challenges arise.
“We are positive about our guidance for the first half of the year and are confident that we will be able to deliver on our guidance for the full year.”
The London-based company said in March that its profits were almost halved to $160.8m (£134.6m) last year on losses from fixed income investments due to higher interest rates.
Central banks have repeatedly raised interest rates as a result of high inflation, driven largely by soaring energy prices that fueled inflation after Russia’s invasion of Ukraine.
This resulted in significant market translation losses on Beasley’s fixed income portfolio, which generated an investment loss of $179.7 million.
Beasley stock were up 3% to £6.04 just before Friday’s close, making it the largest gain in the FTSE 100 index. They are up about 82 percent over the past two years.
