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 all business divisions contributing positively.

• Insurance written premiums grew 7% year-over-year to $3,123.3m, with net written premium up 10% to $2,586.5m and strong demand across specialty lines and platforms.

• Discounted combined ratio improved to 77% (from 84%), and annualised return on equity rose to 28% (from 18%).

• Property segment led with 25% growth, and cyber showed resilience and innovation, including catastrophe bond launches and robust performance during a major global IT outage.

• Share buyback program of up to $325m is ongoing, with $173.1m spent by 30 June 2024 and completion expected by year-end.

Financial highlights

• Insurance service result rose 63% to $558m; net investment income increased to $251.7m (4.8% annualised return).

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

• Profit after tax increased to $571.6m; basic EPS rose to 86.8c; net assets per share up to 647.1c.

• Gross premium grew 7%, net premium growth reached 10%, and investment portfolio stood at $10.7bn.

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

Outlook and guidance

• Full-year undiscounted combined ratio guidance improved to around 80%, assuming average catastrophe activity in H2.

• High single-digit premium growth guidance reiterated for FY2024, with net growth slightly higher due to reduced quota share reinsurance.

• Confident in delivering sustainable results, with focus on profitable growth, capital discipline, and dynamic market opportunities in property and cyber.