Insurer Beazley sees stronger than expected premium rises

Beazley, the Lloyd’s of London insurer, hailed what it described as a “material change in sentiment in our market” which will lead to double-digit growth in premiums this year.

Specialist commercial insurers such as Beazley have suffered from two consecutive years of rising claims, partly caused by large natural catastrophes.

Reporting results on Tuesday, the company said that the claims were finally leading to price rises.

“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,” the company said.

Beazley said it saw opportunities in lines such as marine, property and aviation.

The comments came as Beazley reported a big jump in first-half profits, from $58m to $166m, as higher investment returns more than offset the rising cost of claims.

Premium income increased by 12 per cent to almost $1.5bn.

The company’s combined ratio — a measure of claims and costs as a proportion of premiums — worsened from 95 per cent to 100 per cent.


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