Beazley raises £350m as it eyes cyber push

The placement completed today has added nearly 10% to the insurer’s issued share capital.

Ahead of the raise Beazley cited “market dislocation” in certain insurance classes as an opportunity to push ahead and deliver “outsized returns”.

On cyber the provider noted that “rates remain high, and demand continues to outweigh supply with significant barriers to entry for new carriers”.

According to Marsh, cyber pricing in the UK eased in the third quarter. However while the year-on-year rise was far below the peak 102% hike posted in Q1 it still came in at 66%.

Brokers have seen changes in the market over the past year.

Along with established players such as Beazley and CFC, US based cyber insurance provider Coalition has entered the UK market after partnering with Allianz.

New business

Beazley highlighted it writes more cyber exposure than it is able to retain.

“The company expects the opportunity to write more new business in cyber to continue into 2023 and beyond and growth in property classes will enable the company to accelerate growth holistically, retaining more cyber and specialty business on balance sheet, increasing exposure to profitable business already written by Beazley and reducing the need for additional purchases of reinsurance,” the insurer reported.

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