Beazley Share News (BEZ)

(Sharecast News) - Insurer Beazley posted a better-than-expected surge in full-year pre-tax profit on Thursday as three of its six divisions achieved double-digit growth.
In the year to the end of December, pre-tax profit jumped 250% to $267.7m as the investment return grew 4.8%. Analysts had been expecting pre-tax profit of $220.9m.

Gross premiums written were up 15% to $3.0bn and net premiums written were 11% higher at $2.5bn.

The combined ratio, a measure of general insurance underwriting profitability, deteriorated a touch to 100% from 98%, impacted by intensifying claims across several lines of business and reduced reserve releases from previous years.

Prior year reserve releases were $9.5m versus $115m in 2018 and the dividend per share was lifted by 5% to 12.3p.

Beazley said natural catastrophes had taken a smaller toll on the business than in 2018, but still had a material impact, with its estimated costs of Typhoons Faxai and Hagibis and Hurricane Dorian totalling about $80m net of reinsurance and reinstatement premiums. In addition, a number of the company's liability lines were also hit by US jury awards, particularly affecting its management liability book and large risk professional liability business for hospitals.

Chief executive Andrew Horton said: "An adverse claims experience across several lines of business, leading to reduced prior year reserve releases, meant that our combined ratio rose to 100% for 2019.

"Despite this, we are optimistic that the remedial action that we have been taking across several lines of business in recent years, alongside the expected continued premium rate increase, will favour us as we move into 2020."