Beazley (BEZ) H1 2026 earnings summary

Executive summary

• Profit before tax for H1 2026 was $237.7m, down 53% year-over-year, reflecting a challenging specialty insurance market and increased large loss activity.

• Insurance written premiums decreased 4% to $3,050.6m, with net insurance written premiums down 6% to $2,439.6m.

• Combined ratio (undiscounted) rose to 93.3% from 84.9% year-over-year, indicating higher claims and expense pressures.

• Return on equity (annualised) fell to 7.6% from 18.2% in H1 2025.

• Strategic investments in Bermuda and the acquisition of kWh Analytics are expected to drive long-term growth.

Financial highlights

• Insurance service result dropped 44% to $274.8m year-over-year.

• Net investment income was $211.6m, down from $308.5m in H1 2025, reflecting subdued market returns.

• Earnings per share fell 56% to 23.2 pence.

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

• No interim dividend declared for H1 2026.

Outlook and guidance

• Management expects continued soft market conditions and heightened geopolitical and cyber risks.

• Focus remains on disciplined underwriting, prudent risk selection, and de-risking unprofitable areas.

• Ongoing investments in Bermuda and transition underwriting, including renewable energy, are expected to support future growth.

• The Zurich acquisition is anticipated to close by year-end, with integration risks being actively managed.