Beazley swings back to profit in first half

(Sharecast News) - Beazley reported a first-half profit before tax of $167.3m (£121.81m) on Friday, swinging from a loss before tax of $13.8m in the first half of the prior year.

The FTSE 250 insurer said its annualised return on equity was 15% as at 30 June, compared to a negative 1% return a year ago, while cross premiums written grew by 22% to $2.04bn.

Its combined ratio was 94%, compared to 107% 12 months prior, as it reported a rate increase on its renewal portfolio of 20%, up from an increase of 11%.

Prior year reserve releases totalled $95.7m in the period, up from $58.6m year-on-year, while net investment income remained relatively stable at $83.6m, compared to $83.2m in the first half of 2020.

The board said it would pay no interim dividend, in line with the prior period.

"Beazley's gross premiums written increased by 22% to $2.04bn with all divisions achieving rate rises in the first six months of 2021," said chief executive officer Adrian Cox.

"Reserve releases across all divisions supported a half year combined ratio of 94% and the investment return achieved was also strong at 1.2% year to date.

"I am excited about the growth opportunities ahead."

Cox said the company's capital base remained "strong", adding that it was "well-placed" to support its growth plan.

"The board remains committed to a dividend payment, and will consider this at year-end after taking into account the 2021 results as a whole."

At 0839 BST, shares in Beazley were up 4.16% at 376p.