Beazley has revealed a remarkable 9% growth in insurance written premiums, amounting to $4.3 billion during the first nine months of 2023.
This surge was particularly driven by the opportunistic strides made in the property market.
Net insurance written premiums surged by an impressive 26% year-on-year, reaching $3.5 billion in the same period. Notably, Beazley experienced an overall year-to-date rate increase of 5%, a notable shift from the 17% reported in 9M 2022.
The star performer was Beazley’s Property Risks division, demonstrating a premium growth of 63% to $1.1 billion. This surge compensated for declines in other segments, with property unit rates increasing by 24% during the period. Beazley acknowledged the exceptional conditions in the property market this year and anticipates favorable conditions extending into 2024.
In the Cyber Risks sector, premiums marked a 4% increase, totaling $872 million, despite a moderate rate decrease throughout 2023. Beazley maintains confidence in the sector’s pricing adequacy, considering the rate rises observed since 2019.
Within its Digital arm, Beazley reported a slight dip in premiums year-on-year, down by 6% to $169 million, along with a marginal decrease in rates.
For Map Risks, premiums experienced a 10% decline, amounting to $754 million, although rates witnessed a 7% increase this year. Beazley attributes this dip in premiums to the fact that the portfolio underwriting business is now managed by syndicate 5623, predominantly backed by third-party capital.
Specialty Risks encountered a 2% fall in premiums during 9M 2023, totaling $1.4 billion, with a slight reduction in rates. Beazley noted the competitiveness of the D&O market as a factor influencing the performance in specialty risks.
In terms of claims, Beazley reported an overall experience better than expected in 2023. Natural catastrophe losses have remained within the margins held in its reserves for such events.
Beazley remains confident that the conflict in the Middle East will not impact its full-year results, although continuous monitoring of the situation is in place.
On the asset side of the balance sheet, Beazley reported an investment return of 2.1% after 9M 2023.
Speaking about the results, Adrian Cox, Chief Executive Officer, commented: “We have taken advantage of the opportunities in the property market this year with our Property Risks division growing 63% as rates increased by 24%. In the Cyber Risks division we continue to experience sustained, demand led growth. We remain committed to disciplined underwriting and have delivered a level performance in Specialty Risks despite significant dislocation in the D&O market.
“The insurance business is cyclical and market conditions are evolving quickly. We have chosen to exercise underwriting discipline meaning growth to date is less than we had planned at the start of the year. However, our agile underwriting and the strength of our platform strategy means we have delivered profitable growth to date and our claims experience is better than anticipated.”
He added: “With sustained discipline and agility in our underwriting I look forward to reporting a strong profit at year end.”
Author: Joanna England
