Beazley reveals financial results for 2023
Beazley reveals financial results for 2023 | Insurance Business Australia
Insurance News
Beazley reveals financial results for 2023
Firm has also appointed a new CFO
Insurance News
By
Kenneth Araullo
Beazley plc has unveiled its financial outcomes for the year ending December 31, 2023, showing growth in its financial metrics and operational areas.
The insurer recorded an increase in its pre-tax profits, which rose to $1,254.4 million, up from $584.0 million in the previous year. Written premiums also saw an uptick, with insurance written premiums climbing to $5,601.4 million from $5,246.3 million, and net insurance written premiums escalating to $4,696.2 million from $3,772.4 million.
The firm’s operational efficiency was marked with improved combined ratios, reporting an undiscounted combined ratio of 74% and a discounted combined ratio of 71%, enhancements from 82% and 79% respectively in 2022.
Furthermore, Beazley’s return on equity surged to 30%, an increase from the previous year’s 19%.
Looking forward, Beazley anticipates high single-digit gross IWP growth for the fiscal year 2024 and projects an undiscounted combined ratio in the low 80s. The company also announced an interim dividend of 14.2p and the initiation of a share buyback programme valued at up to $325 million.
Segment-specific results, new CFO appointed
In the segment-specific performance, the cyber risks team reported an IWP of $1,184.3 million, with growth mainly from international business, especially in Europe, amidst a stabilising rate environment.
The digital segment saw a result of $59.4 million, reflecting disciplined underwriting and expanded distribution, with an IWP of $227.5 million and an improved combined ratio of 68%.
The MAP risks division delivered an outcome with a combined ratio of 79%, despite a 14% decrease in IWP to $964.3 million due to a shift in underwriting strategy.
Property risks, meanwhile, benefitted from the market’s upward rate trend, marking a 64% growth in IWP to $1,351.9 million. Specialty risks also maintained stability amidst a softening market in D&O, achieving an IWP of $1,873.4 million.
In addition to the financial outcomes, Barbara Plucnar Jensen has been appointed as Beazley’s chief financial officer (CFO), set to commence on May 1, 2024.
Adrian Cox, Beazley’s CEO, shared his enthusiasm about the financial performance and strategic positioning.
“I am delighted with our record $1.25 billion profit which enables us to launch a share buyback programme of up to $325m. The strength of Beazley’s expertise-led underwriting and claims management was the driver of the excellent combined ratio we achieved in 2023. We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well positioned to continue successfully growing our business and I remain confident that Beazley will see strong, long-term performance.”
Cox also expressed confidence in Jensen’s upcoming role as CFO, citing her extensive experience and leadership qualities as valuable assets for Beazley’s continued success and cultural integration.
Elsewhere, the specialist insurer has also made significant developments within its cyber practice with its first 144A cyber catastrophe bond, securing $140 million in coverage.
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