Beazley (BEZ) H2 2025 earnings summary

Executive summary

• Profit before tax reached $1,146.5m for 2025, down 19% year-over-year, but still exceeding $1bn for the third consecutive year.

• Combined ratio remained strong at 81% undiscounted (77% discounted), reflecting disciplined underwriting.

• Insurance written premiums slightly decreased by 1% to $6,100.7m, while net insurance written premiums rose 1% to $5,198.7m.

• Return on equity was 19%, compared to 27% in 2024.

• Board agreed to a recommended all-cash acquisition offer by Zurich Insurance Group Ltd.

Financial highlights

• Earnings per share were 113.4p, down 17% year-over-year.

• Net assets per share increased 7% to 612.0p; net tangible assets per share also up 7% to 583.9p.

• Investment return held steady at 5.2%, generating $607.5m.

• Expense ratio increased to 32.8% (from 31.7%), reflecting ongoing investment in technology and staff.

• Solvency II coverage ratio improved to 281% (from 264%).

Outlook and guidance

• Expectation of continued competitive pricing and global instability in 2026.

• Focus remains on profitable underwriting, innovation, and growth opportunities, especially in Bermuda and energy transition insurance.

• Targeting mid-single digit premium growth and mid-80s undiscounted combined ratio across the cycle.

• Cross-cycle ROE target set at 15%.