Beazley plc has released results for the six months to 30 June 2018.

Summary results are as follows:

 

 

6m to 30 June 2018

$m

6m to 30 June 2017

$m

12m to 31.12.17

$m

Gross Written premiums

$1,323.8

$1,149.3

$2,343.8

Net earned premiums

$990.2

$886.7

$1,869.4

Pre-tax profit

$57.5m

$158.7

$168.0

Combined ratio

95%

90%

99%

 

Gross premiums increased by 15%, with all segments of the accounts showing an increase. Rates, which have been under pressure for a number of years, were up for renewal business by an average of 3%, compared to a reduction of 2% twelve months ago. A chart showing rate relativities is shown here.

The investment return was down by almost 90%, owing to the impact of increasing US interest rates on the bond portfolio. The group expects that the increased interest rate environment will deliver stronger returns in the second half of the year and beyond.

Although there have been no major catastrophes during 2018 so far, there has been some movement on the reserves for the hurricanes and other major claims that impacted 2017. Reserves for the direct property account needed to be increased both for catastrophe events and also for worsening attritional claims activity. There was a reduction in catastrophe claims’ reserves in the reinsurance account. Overall, there was a release from reserves of $48m, compared to $83m twelve months ago.

As previously announced, Chief Underwriting Officer and Active Underwriter of Syndicate 623, Neil Maidment will be retiring at the end of the year and will be succeeded by Adrian Cox, who has headed the Specialty Lines team since 2008. The company has also announced that Group Financial Director Martin Bride will be retiring during 2019.

The full report can be found here and the analysts’ presentation slides here.