Beazley posts FY combined ratio of 79%, top line hits $6.16 billion

By Ryan Hewlett

March 4 - (The Insurer) - Beazley reported an undiscounted combined ratio of 79% in its annual results announcement on Tuesday, with the London-listed carrier disclosing an initial loss estimate for January’s California wildfires in the region of $80 million.

• Profit before tax increased to $1.42 billion (2023: $1.25 billion)

• Undiscounted combined ratio of 79% (2023: 74%)

• Initial estimate for California wildfires of around $80 million

• $500 million share buyback programme to be launched

Beazley’s undiscounted combined ratio deteriorated by 5 percentage points compared with the 74% reported in 2023. Despite the deterioration, the result was 0.9 points better than had been expected by analysts.

On a discounted basis, the combined ratio deteriorated to 75% in 2024, compared with 71% in 2023.

Profit before tax rose more than 13.4% to a record $1.42 billion in the full year, compared to $1.25 billion in the prior year.

Profit came in 9.2% ahead of consensus, largely driven by better-than-expected claims experience.

"Our record profit of $1.4 billion, along with a 79% undiscounted combined ratio and strong premium growth is a testament to the strength of our expertise. I am delighted with what our company has achieved amidst a challenging claims environment, including an active hurricane season,” said CEO Adrian Cox.

Beazley’s insurance service result decreased by 1% to $1.23 billion but still came in 4.9% ahead of consensus.

Insurance written premiums increased by 10% to $6.16 billion. The top-line growth came in 3% ahead of analyst expectations.

The group also disclosed an initial net loss estimate for January’s California wildfires of around $80 million. Jefferies analyst Philip Kett described the loss estimate as “modest” and said the figure was “far below” peers.

In addition, Beazley increased its ordinary dividend by 76% to 25 pence per share and said it would launch a $500 million share buyback.

Jefferies’ Kett said the latest share buyback is 54% higher than last year's $325 million and is 11% above the investment bank’s own forecast of $450 million, while the uplifted dividend is 64% ahead of consensus expectations.