Beazley takes advantage of “exceptional” property market in 9M 2023
Specialist insurer Beazley has reported insurance written premium growth of 9% to $4.3 billion for the first nine months of 2023, as the firm took advantage of opportunities in the property market.
Net insurance written premiums rose 26% year-on-year to $3.5 billion in 9M 2023, as Beazley reports an overall year to date rate increase of 5%, compared with 17% in 9M 2022.
Premium growth in the firm’s Property Risks division of 63% to $1.1 billion more than offset declines in other segments. The property unit also saw rates increase by 24% during the period. Beazley notes exceptional conditions in the property market this year, and expects favourable conditions to persist into 2024.
In Cyber Risks, premiums rose 4% to $872 million, although there’s been a moderate rate decrease during 2023. However, Beazley still feels that pricing is adequate in the sector, given the rate rises since 2019.
Within its Digital arm, Beazley has reported a 6% dip in premiums year-on-year to $169 million, as well as a slight decrease in rates.
In Map Risks, premiums fell 10% to $754 million, although rates increased 7% this year. Beazley attributes the dip in premiums to the fact the portfolio underwriting business is now being written by syndicate 5623 which is backed predominantly by third party capital.
Within Specialty Risks, premiums fell 2% in 9M 2023 to $1.4 billion, as rates decreased slightly. The insurer states that the D&O market remains competitive driving the level performance in specialty risks.
In terms of claims, Beazley says that the overall experience has been better than expected so far in 2023. Natural catastrophe losses have so far been within the margins held in its reserves for such events.
Beazley also says that it is confident there will be no impact on its full-year results from the conflict in the middle east, although it does continue to monitor the situation.
On the asset side of the balance sheet, Beazley reports an investment return of 2.1% after 9M 2023.
Adrian Cox, Chief Executive Officer, commented: “We have taken advantage of the opportunities in the property market this year with our Property Risks division growing 63% as rates increased by 24%. In the Cyber Risks division we continue to experience sustained, demand led growth. We remain committed to disciplined underwriting and have delivered a level performance in Specialty Risks despite significant dislocation in the D&O market.
“The insurance business is cyclical and market conditions are evolving quickly. We have chosen to exercise underwriting discipline meaning growth to date is less than we had planned at the start of the year. However, our agile underwriting and the strength of our platform strategy means we have delivered profitable growth to date and our claims experience is better than anticipated.
“With sustained discipline and agility in our underwriting I look forward to reporting a strong profit at year end.”
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