Beazley shares lift on first-half pre-tax profits boost

24th Jul 2015 09:27

(ShareCast News) - Insurance company Beazley posted a 16.3% jump in first half net profit, driving its share price up.Shares in the FTSE 250 stock were up 2.18% to 327.50p after the company said pre-tax 30 June was $154.5m, up from $132.9m, surpassing market expectations.Beazley said growth was driven by its locally underwritten US businesses in which managed premiums rose to $296.9m from $238.2m.The insurer increased its first interim dividend to 3.3p from 3.1p."We continue to manage our capital actively, as demonstrated through the payment of the special dividend announced in the 2014 results, whilst retaining the flexibility to capitalise on attractive investment opportunities," the company said in a statement.Analysts at Numis held a 'add' rating on the stock, and a 350p target price. It said profit before tax was materially ahead of consensus."Although this result is flattered by favourable claims, we think the underlying trends are positive for longer-term value creation, particularly growth in the US and specialty segments," analysts said in a note.Shore Capital reiterated a 'buy' rating target price of 320p, and added the results were "terrific".It said the results show the company's ability to nimbly allocate capital to lines generating the best returns."The group goes from strength to strength with an underwriting franchise which is unlikely to escape the attentions of any corporate predators seeking access to a high quality and diversified Lloyd's underwriter," analysts said.