London-listed re/insurer Beazley obtained a positive share reaction on Friday November 8th when it reported gross premiums written up by 12% to $2,192m for the first nine months of 2019 (9mo 2018: $1,958m).
Premium rates on renewal business increased by 6% and the company booked an investment return of $215m, up from $26m for the same period last year.
CEO Andrew Horton said that “we continue to see strong, double digit premium growth across our business as a whole, driven by organic growth and rate rises across many lines of business”.
However, Horton noted that Beazley continued to experience heightened claims activity with its exposure to catastrophes in Q3 estimated to be $80m net of reinsurance and reinstatement premium.
The marine division saw an increase in premium of 5%. Beazley said that marine had seen rate increases in 2019 which has facilitated this growth.
|GPW||Sept 30 2019||Sept 30 2018||% increase/ decrease||Q3 2019 rate change|
The re/insurer anticipated a full-year combined ratio of between 100% and 102%, due to lower reserve releases than seen in previous years.
“Whilst we expect to deliver overall reserve releases from our specialty lines and cyber & executive risk divisions, we anticipate that these will be at a lower level than in previous years,” it said in its nine-month trading statement.