Beazley (BEZ) CMD 2025 summary

Business Model and Strategic Priorities

• Focus on specialty insurance and complex, structurally growing risk areas, leveraging deep underwriting expertise and continual product innovation to deliver long-term outperformance for shareholders.

• Product diversification with over 50 products, targeting complex, volatile, or emerging risks, and enabling agile response to market cycles and risk opportunities.

• Global platform strength with diversified operations in Lloyd's, North America, and Europe, supporting agile capital allocation and consistent profitability.

• Emphasis on underwriting alpha and innovation, particularly in emerging areas like cyber, property, D&O, Safeguard, and transition underwriting.

• Investment in talent and strategic acquisitions to drive expansion, especially in North America and Europe.

Financial Performance and Guidance

• Maintains a disciplined approach to underwriting, targeting a 15% ROE across cycles, with a 10-year average ROE of 15.5% and a 5-year average of 17.7%.

• Gross premium has more than tripled since 2010, with a compound annual growth rate supported by disciplined cycle management.

• Investment portfolio has doubled since 2019 to over $11.7 billion, with an average yield of 4.0% as of September 2025, supporting capital generation and liquidity.

• Over $2.5 billion returned to shareholders in the last decade, with payout ratios of 43% in 2024 and 64% in 2025, including $825 million in buybacks over 2024-2025.

• Mid-80s combined operating ratio targeted, with mid-single digit growth and 15% ROE expected through the soft cycle.

Capital Management and Deployment

• Capital strategy aims to stay above a 170% SCR ratio, prioritizing sustainable growth and profitability.

• Capital is first deployed for organic growth, then for strategic acquisitions focused on capabilities and IP, with excess returned to shareholders if not used for value creation.

• Dividend and share buyback programs are maintained, with progressive ordinary dividends and additional returns as appropriate.

• SCR ratio expected to decrease at year-end 2025 due to lower interest rates and Bermuda investment, with capital deployment decisions to be made at year-end.

• Bermuda investment is expected to have a marginal impact on volatility and expense ratio, with most premium written as a risk carrier.