Specialty insurer and reinsurer Beazley has said that rate changes on its short tail businesses in Q1 had been encouraging “with the marine division achieving the highest overall rate change at 7%”.
Gross written premiums (GWP) increased by 16% to $731m (2018: $631m).
Premium rates on renewal business increased by 3%.
There was an investment return of 2% year to date.
Beazley CEO Andrew Horton said that “Beazley started 2019 very positively from a premium growth perspective. However, our marine, property and reinsurance businesses continued to be impacted by higher than normal levels of claims.”
|Q1||March 31 2019||March 31 2018||% increase|
|Gross premiums written ($m)||731||631||16|
|Investments and cash ($m)||5,095||4,846||5|
|Year to date investment return||2%|
The company said that the strong premium income start to the year “in an improving rating environment” should enable the business to generate double digit growth in 2019.
Rate change on our short tail businesses was encouraging with the marine division achieving the highest overall rate change at 7%.
|Gross premiums written 31 March 2019||Gross premiums written 31 March 2018||% increase/(decrease)||Q1 2019 Rate change|
Beazley said that its business was well prepared for all of the perceived eventualities of the Brexit outcome. It has begun transacting business successfully through Lloyd’s Brussels and the European Insurance company wrote $13m of premium during Q1.
The more active claims environment witnessed in 2018 had continued. Beazley has strengthened reserves in some areas of its short tail business, notably in relation to typhoon Jebi, the Woolsey fire and a portfolio of US trucking business within the marine account. The company said that these increases were likely to offset the reserve release from our specialty lines and CyEx businesses in the first half of 2019.