Beazley (BEZ) Q3 2024 TU earnings summary

Executive summary

• Delivered a strong Q3 with insurance written premiums up 7% year-over-year to $4,625m and net written premiums up 7% to $3,792m for the nine months ended 30 September 2024, maintaining disciplined underwriting and risk selection despite an active hurricane season and cyber events.

• Investment income surged to $513m (4.7% return), up from $202m (2.1%) in Q3 2023, with an average fixed income yield of 4.3% at September end.

• Combined ratio guidance for the year remains at around 80%, assuming average catastrophe activity, despite estimated losses from Hurricanes Helene and Milton between $125m–$175m.

• Gross and net premium growth both at 7% for the nine months, with increased reinsurance spend to hedge cyber systemic risk via catastrophe bonds and ILWs.

• Share buyback program completed at the end of September.

Financial highlights

• Investments and cash increased 15% year-over-year to $11,433m.

• Equity portfolio gained over 20% year-to-date; credit exposures also delivered strong returns.

• Rate change for the nine months is flat year-over-year, compared to a 5% increase in Q3 2023.

• Average yield of fixed income investments stood at 4.3% as of 30 September 2024.

• Share buyback program completed at the end of September.

Outlook and guidance

• Full-year guidance reaffirmed: high single-digit growth, low single-digit rate change, combined ratio around 80%, and fixed income yield of 5%.

• Growth for 2025 expected to be in the mid single digits, lower than this year, with rates expected to remain flat.

• Capital management actions, including potential share buyback renewal or special distribution, to be assessed at year-end based on available capital.