It’s been a strong year-to-date for specialist insurer Beazley Group, as it reported a surge in gross written premiums for the first nine months of the year – rising by 16% year-on-year to US$2,534 million (around AU$3,485 million).
The company, which also saw premium rates on renewal business jump by 14% estimated its COVID-19 first party losses at an unchanged US$340 million net of reinsurance, with a catastrophe estimate of US$80 million net of reinsurance.
“We have seen strong, double-digit premium growth across our business as a whole so far this year, driven primarily by rate rises across all divisions,” said CEO Andrew Horton. “I am extremely proud of all Beazley employees who have shown commitment and resilience throughout this time while continuing to support our customers and deliver the excellent claims service we pride ourselves on.
“Pricing conditions are positive and we have the expertise and the capital in place to take advantage of these market conditions. We have great confidence in our ability to deliver mid-teens growth next year and strong shareholder returns in 2021 and beyond.”
Breaking down its individual business divisions, cyber and executive risk saw a 21% increase in GWP to US$686 million; marine jumped 11% to US$256 million; market facilities climbed 182% to US$96 million; political, accident and contingency stayed roughly even at US$205 million; property rose 5% to US$354 million; while reinsurance was also largely even at US$192 million. Its specialty lines business, meanwhile, jumped 19% to US$745 million.
“We continue to actively engage in cycle management, ensuring we maintain a balanced portfolio while fully capitalising on the opportunities,” the company added in its financial statement. “Rates are increasing in most of our classes and in many areas are now at levels where the risk reward ratio warrants writing materially more business. This is particularly true in directors’ and officers’ liability, despite the heightened risk environment, and most marine classes of business where the teams are significantly growing market share.
“Off-setting this, we continue to restrict appetite where there is particular exposure to the impacts of social inflation, pandemic claims or a recession. The main areas impacted by this are employment practices liability and some professional and healthcare liability classes.”