Beazley posts 14% GWP growth as profits nearly halve in 2022

However, pre-tax profit fell year-on-year from $369.2m to $191m.

The near 50% drop was driven by investment losses of $179.7m compared to a profit of $116.4m in 2021.

The annual result mirrored the half-year figures where the insurer also flagged investment returns hitting the bottom line.

The provider stated that it had achieved a “very strong underwriting result”.

The combined operating ratio improved to 89% in 2022 from 93% in the prior-year.

Rate rises

The insurer flagged it had pushed through 14% rate increases on its renewal portfolio.

The breakdown of the figures showed the digital unit for SME business delivered a pre-tax profit of $14.4m.

Digital started underwriting as a separate division in January 2022.

It was created to build on the myBeazley portal and respond to demand from clients and brokers. The provider noted it gives brokers one Beazley point of contact, supported by a cross functional team, to access multiple product lines and digital services via their preferred platform or channel.

The business handles risks from across the US, UK and Europe.

Growth

The segment underwrites a variety of marine, contingency and SME liability risks through digital channels such as e-trading platforms and broker portals

At its core are lines such as professional indemnity, management liability, tech professions errors and omissions, medical malpractice, event cancellation and pleasure craft.

GWP came in at $204.9m for the first full year of operation with a COR of 87%.

Cyber

Beazley’s numbers also revealed “strong rate increases” of 40% in cyber.

GWP for cyber risks increased to $1.57bn from $814.3m in 2021.

Last November Beazley raised £350m for a cyber and specialty push as it eyed an opportunity to move ahead and deliver “outsized returns”.

Cyber posted $129.8m of pre-tax profit, more than double the $61m result in 2021.

The COR improved markedly dropping from 91% to 79%.

On property an expected $120m net loss from Hurricane Ian affected the overall result. GWP increased to $859.8m (2021: $812.6m) and the COR still improved to 98% (2021: 106%).

Diversified

Adrian Cox, CEO of Beazley, said: “We achieved a very strong underwriting result in 2022 with a combined ratio of 89%.

“Despite a challenging geopolitical environment and mark to market investment losses we returned a profit before tax of $191m.

“Our diversified book of business enables us to redeploy capital to areas where we see the most attractive growth prospects.”

He concluded: “After raising equity in November, along with a solid January renewal season, we continue to lean into the opportunity we are seeing in the property market whilst executing on our cyber growth plans.”

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