Beazley (BEZ) Q1 2025 TU earnings summary

Executive summary

• Market conditions softened as expected, with premium rates on renewal business down 4% in Q1 2025, aligning with prior guidance.

• Insurance written premiums rose 2% to $1,511m, with net written premiums up 1% to $1,249m.

• Underlying premium growth, excluding prior year adjustments, was mid-single digits year-over-year, in line with full-year guidance.

• Investment income reached $136m (1.2% return), up from $126m in Q1 2024, with an average fixed income yield of 4.4%.

• The group remains focused on portfolio optimization and disciplined underwriting amid a competitive and volatile environment.

Financial highlights

• Investments and cash increased 9% year-over-year to $11,757m.

• Insurance finance income (IFI) for Q1 2025 was an expense of $68m, impacted by lower discounting credit and changes in yield curves.

• Average yield on fixed income investments is 4.4% with a 1.6-year duration.

• Investment performance delivered a positive result of $136m, or a 1.2% return.

Outlook and guidance

• Full-year growth guidance remains at mid-single digits, with an undiscounted combined ratio expected in the mid-80s.

• Rates are expected to decline 0-5% for the year, with some variation across divisions but no major deviations anticipated.

• Anticipates strong growth in MAP Risks by year-end despite Q1 impact from premium estimate updates.

• The market is described as brittle, with potential for rapid change due to shocks or geopolitical events.