Beazley records record profit despite wildfire losses
Lloyd’s of London insurer Beazley has reported a record profit before tax of $1.4bn (£1.1bn) for 2024, a 13 per cent increase from the previous year.
Gross insurance written premiums grew by 10 per cent to $6.2bn (£4.9bn), while net insurance written premiums also increased by 10 per cent to $5.2bn (£4.1bn).
The company reported an undiscounted combined ratio of 79 per cent, compared to 74 per cent in 2023, with a discounted combined ratio of 75 per cent.
The combined ratio is a key measure of an insurer’s profitability and represents the percentage of premiums paid out in claims and expenses.
A ratio below 100 per cent indicated an underwriting profit, while a ratio above 100 per cent suggested underwriting losses.
Return on equity stood at 27 per cent, down from 30 per cent in the previous year.
Beazley estimated losses from the Californian wildfires at approximately $80m (£63m).
Despite the slightly higher loss ratio, the group guided for mid-single-digit growth guidance for gross insurance written premiums in 2025 and expected an undiscounted combined ratio in the mid-80s range.
Earnings per share increased by 10 per cent to 137p, while net assets per share rose 22 per cent to 570.5p.
Net tangible assets per share also climbed by 22 per cent to 545.9p.
Adrian Cox, chief executive officer, said: “Our record profit of $1.4bn, along with a 79 per cent undiscounted combined ratio and strong premium growth, was a testament to the strength of our expertise. I was delighted with what our company achieved amidst a challenging claims environment, including an active hurricane season.”
He continued: “This robust performance enabled a share buyback of $500m as well as an ordinary dividend rebase to 25p, which was a 76 per cent increase. We remained well capitalised to take advantage of growth opportunities in an evolving market and sustain our strong financial performance over the long term.”