Beazley (BEZ) H2 2024 earnings summary

Executive summary

• Achieved record profit before tax of $1,424m for 2024, marking the second consecutive year of record results, with strong premium growth and robust underwriting despite an active claims environment.

• Insurance written premium grew 10% year-over-year to $6,164.1m, with strong growth in property and specialty risk segments.

• $500m share buyback executed and ordinary dividend increased by 76% to 25p, returning $700m to shareholders.

• Maintained a diversified, product-led underwriting strategy across North America, Europe, and Wholesale platforms.

• Demonstrated business resilience and confidence in capital strength and future growth.

Financial highlights

• Profit before tax increased 13.5% to $1,423.5m, with net insurance revenue rising to $4,913.2m.

• Undiscounted combined ratio was 79%, within guidance, with claims ratio at 43.1%.

• Net investment income reached $574.4m, with a 5.2% portfolio return.

• Reserve releases totaled $144.5m, or 2.9% of net insurance revenue.

• Solvency capital ratio at year-end 2024 was 264% post-distribution, maintaining a strong capital position.

Outlook and guidance

• Forecasting mid-single digit premium growth and a mid-80s combined ratio for 2025, reflecting expected market softening and wildfire provisions.

• Ongoing investment in digital, cyber, and property underwriting, with focus on organic growth and selective acquisitions.

• Property and cyber segments expected to drive long-term and international growth.

• Capital flexibility retained to respond to emerging opportunities or return surplus capital if not deployed.

• Fixed income yield at year-end projected at 4.6%.