Beazley post record H1 profit, but combined ratio jumps

7th Sep 2023 07:16

(Sharecast News) - Insurance group Beazley said it remains on track to hit guidance after delivering record profits in the first half, though its combined ratio jumped.

Pre-tax profit totalled $366.4m in the six months to 30 June, up only slightly from $364.9m a year earlier, despite insurance written premiums rising 13% to $2.92bn.

Beazley said property insurance written premiums jumped 65% while cyber premiums rose 14%.

However, the company saw a sharp rise in insurance service expenses to $2.08bn fro $1.74bn a year earlier.

The combined ratio, a key measure of profitability calculated by dividing incurred losses and expenses by earned premiums (and therefore the lower the better), increased to 84% from 71%.

"We have confidence in the ability of our diversified platform, product and geographic strategy to continue to deliver and look forward to achieving mid-teens growth," said chief executive Adrian Cox.

He reiterated the group's guidance of a full-year combined ratio guidance in the "low eighties".