Beazley (BEZ) Q3 2024 TU earnings summary

Executive summary

• Delivered a strong Q3 with disciplined underwriting and risk selection, maintaining combined ratio guidance at around 80% for the year.

• Insurance written premiums rose 7% year-over-year to $4,625m for the nine months ended 30 September 2024; net written premiums also increased 7% to $3,792m.

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

• On track to meet full-year guidance, with both underwriting and investment teams contributing.

• Initial net exposure to Hurricanes Helene and Milton estimated at $125m–$175m.

Financial highlights

• Gross and net premium growth at 7% year-over-year for the nine months, with written premiums at $4,625m and $3,792m respectively.

• 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.

• Premium rates on renewal business were flat, compared to a 5% increase in Q3 2023.

• Combined ratio guidance maintained at around 80% for the full year.

Outlook and guidance

• Growth for 2024 expected in the high single digits, with rate change in the low single digits.

• For 2025, growth is likely to moderate to mid single digits, with rates expected to remain flat.

• Capital distribution decisions, including potential share buybacks or special distributions, will be assessed at year-end based on available capital.