Beazley posts $24.2m interim loss

by Gill Montia

Story link: Beazley posts $24.2m interim loss

Specialist insurer, Beazley, recorded a pre-tax loss of $24.2 million in the six months to the end of June, compared with a profit of $115.5 million in the same period of 2010.

The firm saw gross written premiums fall by 1.7% in the first half, to $924.8 million, but with no rate change on renewal business compared to a year earlier.

Prior year reserve releases stood at $88.6 million (2010: $65.9 million) as investment income increased to $22.5 million (2010: $8.5 million).

Commenting on the results, Beazley chief executive officer, Andrew Horton, says: “Beazley benefited from its diverse underwriting portfolio in the first half, as profits from non-catastrophe exposed classes of business enabled us to largely absorb the impact of record insurance industry catastrophe losses.”

He adds: “In the absence of further catastrophes we expect a mid-nineties combined ratio for the full year.”

The firm has declared an interim dividend of 2.5p (2010: 2.4p).

Earlier this month, Beazley appointed Matthew Holmes to head its energy team, saying that energy risks have accounted for a growing proportion of its business in recent years, surpassing $100 million in gross premiums in 2010.

Mr Holmes, who has over a decade’s experience in the Lloyd’s energy market, has joined from Catlin where he was energy class underwriter, covering upstream, downstream and casualty risks.