Beazley (BEZ) investor relations material

Executive summary

• Half-year profit reached $503m, supported by robust underwriting and investment returns, with annualized ROE over 18% and a combined ratio of 84.9%, outperforming peers despite a more typical catastrophe loss environment.

• Growth was modest at 2%, concentrated in Europe and the MAP division, reflecting geopolitical risk demand and a diversified product portfolio.

• Investment income was strong at $308.5m, with a 2.7%–5.4% return, and a $500m share buyback is underway, with $235m completed by June 30, 2025.

• Specialty expertise, innovation, and disciplined risk management drive resilience and long-term outperformance.

• The business remains focused on long-term profitability, rate adequacy, and selective growth in a softening market.

Financial highlights

• Profit before tax was $502.5m, up 99% from H1 2023 but down 31% year-over-year, driven by underwriting and investment performance.

• Insurance written premium rose to $3,187.1m, up 2% year-over-year.

• Combined ratio of 84.9% aligns with guidance; claims ratio increased to 46.7% (from 45.1% last year) due to normalized catastrophe activity.

• Expense ratio increased to 33.6% (from 31.6% last year), mainly due to higher variable and long-term incentive awards.

• Investment portfolio stood at $11.5bn, up 8% year-over-year, with fixed income yields at 4.1% and a duration of 1.6 years.

Outlook and guidance

• Full-year growth guidance updated to low to mid single digits, reflecting H1's 2% growth and expectations for stronger H2 in MAP, Europe, cyber, and D&O.

• Combined ratio guidance remains mid-80s, with potential to lower to low 80s if attritional losses continue to outperform.

• The company plans to update the market on platform and product strategy at Capital Markets Day in Q4.

• Underwriting discipline and focus on rate-adequate growth areas remain priorities.