Beazley (BEZ) H1 2025 earnings summary

Executive summary

• Delivered H1 2025 profit before tax of $502.5m–$503m, down 31% year-over-year, with annualized ROE over 18% and a combined ratio of 84.9%, reflecting disciplined underwriting and robust investment returns.

• Insurance written premiums grew 2% to $3,187.1m, with growth concentrated in Europe and select specialty lines.

• Investment income rose to $308.5m, with an annualized return of 5.4%, supported by higher fixed income yields.

• Share buyback program of up to $500m underway, with $235m–$235.3m completed by June 30, 2025.

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

Financial highlights

• Profit before tax was $502.5m, with insurance written premium up 2% year-over-year to $3,187.1m.

• Net investment income increased 22.6% to $308.5m, with an annualized return of 5.4%.

• Combined ratio (undiscounted) rose to 84.9% from 80.7% year-over-year, with claims ratio at 46.7% and expense ratio at 33.6%.

• Reserve strength maintained at the 85th percentile, with no material prior year reserve releases.

• Net assets per share increased to 560.0p, and net tangible assets per share to 536.1p.

Outlook and guidance

• Full-year growth guidance revised down to low-to-mid single digits, reflecting softening market conditions.

• Combined ratio guidance maintained at mid-80s, with potential for improvement if attritional losses outperform.

• Continued focus on disciplined underwriting, innovation, and selective growth in cyber, MAP, and renewables.

• Investment yield on fixed income portfolio at 4.1% as of June 30, 2025.

• Updates on platform and product strategy expected at Capital Markets Day in Q4.