Beazley (BEZ) H1 2026 earnings summary

Executive summary

• H1 2026 profit before tax was $237.7m, down 53% from $502.5m, reflecting softer insurance rates, increased large losses, portfolio de-risking and lower investment returns.

• Insurance written premiums fell 4.3% to $3,050.6m as average rates declined 6.5%; disciplined underwriting prioritized price adequacy and profitable business.

• Undiscounted combined ratio rose to 93.3% from 84.9%; annualized ROE fell to 7.6% from 18.2%.

• Bermuda expansion and the kWh Analytics acquisition advanced to support growth in property treaty, transition and renewable-energy underwriting.

Financial highlights

• Insurance revenue was $2,734.7m vs $2,933.6m; insurance service result was $274.8m, down 44% year over year.

• Profit after tax was $184.7m vs $420.3m; basic EPS was 31.2 cents vs 67.2 cents, while EPS fell 56% to 23.2 pence.

• Net investment income was $211.6m vs $308.5m; annualized investment return was 3.6%. H1 profit before tax included $33.6m of Zurich transaction costs.

• Net assets per share increased 10% to 616.7 pence; net tangible assets per share rose 8% to 580.2 pence.

• Operating cash inflow was $48.6m vs $558.5m; cash and cash equivalents were $1,115.8m at 30 June 2026.

Outlook and guidance

• Continued soft market conditions and heightened geopolitical, cyber and climate-related risks are expected; focus remains on disciplined underwriting and de-risking unprofitable areas.

• Bermuda property treaty underwriting began 1 April and exceeded initial targets; expansion into captives and mortgage indemnity was expected to gain pace in H2.

• Bermuda cyber ILS and joint venture initiatives are intended to extend cyber capabilities; the parametric team was due to establish an onshore Bermuda presence during summer.

• Zurich transaction completion was expected before year-end 2026, subject to customary conditions and regulatory approvals; shareholder approval was received on 22 April.