Beazley (BEZ) H1 2024 earnings summary

Executive summary

• Achieved record interim profit before tax of $728.9m for H1 2024, up 99% year-over-year, driven by strong underwriting and investment performance, with discounted combined ratio of 77% and annualised return on equity of 28%.

• Insurance written premiums grew 7% year-over-year to $3,123.3m, with net written premium up 10% to $2,586.5m and all divisions contributing positively.

• Property segment led with 25% growth, cyber maintained robust profitability and resilience during major global IT outage, and digital risks grew 14%.

• Advanced cyber innovation with catastrophe bonds, Beazley Security integration, and successful management of global IT outage.

• Share buyback program of up to $325m on track for completion by year-end.

Financial highlights

• Insurance service result rose 63% to $558m, net investment income increased to $251.7m (4.8% annualised), and profit after tax reached $571.6m.

• Combined ratio improved to 77% (discounted) and 81% (undiscounted), with claims ratio at 45% and expense ratio down to 32%.

• Net assets per share up 34% to 504.7p; net tangible assets per share up 34% to 483.1p.

• Basic earnings per share: 86.8c (42.8c in H1 2023); annualised return on equity: 28%.

• No interim dividend declared; final 2023 dividend of 14.2p paid in May 2024.

Outlook and guidance

• Full-year undiscounted combined ratio guidance improved to around 80%, with high single-digit premium growth expected for FY2024.

• Property and cyber seen as key long-term growth opportunities, especially in US E&S and international markets.

• Confident in delivering sustainable results, with robust cycle management and multi-platform distribution.