Beazley PLC, which manages Syndicates 623, 2623, 3623, 5623 and 6107 at Lloyd’s, has today released a statement based on trading for the nine months ended 30 September 2018.

The group is reporting growth in premium volumes of 11% to $1,958m and an increase in rating for renewal business of 3%. Growth has been strongest in the property division, where volumes are up by 21% and rates on renewal have increased by 11%. Although rates are flat in the specialty lines division, the group’s largest business area, increased demand in the USA saw volumes increase by 11%. The group has ceased underwriting construction and engineering business, which accounts for around 10% of the property volumes. Business plans for all the Lloyd’s syndicates have been approved.

The initial estimates for the recent catastrophe losses (hurricanes Florence and Michael in the USA and typhoons Jebi and Trami in Japan) is for a loss to the group of $105m after reinsurance protections and reinstatement costs. There have also been some individual risk losses in the short tail areas. Claims development within the specialty lines book is said to be within expectations.

Given rising yields and volatile conditions in the investment markets, the investment return is relatively poor, the group reporting a return of $26 million in the ten months to 31 October, 0.5% return for the period, 0.6% annualised.

The full statement can be found here.