Specialist insurer Beazley experienced higher than normal levels of claims within its marine, property, and reinsurance businesses during the first-quarter of 2019, while premium growth continued.
Despite the pressures of increased levels of claims, the insurer did report 16% growth in gross written premiums (GWP) for the first-quarter of the year, to $731 million.
At the same time, Beazley has reported that premium rates on renewal business increased by 3% in the period, which is in line with the 3% rate increase announced in Q1 2018.
“Beazley started 2019 very positively from a premium growth perspective. However, our marine, property and reinsurance businesses continued to be impacted by higher than normal levels of claims,” said Beazley’s Chief Executive Officer (CEO), Andrew Horton.
All business segments, excluding property, experienced GWP growth in the first-quarter: Cyber and executive risk GWP increased 19% and experienced a 2% rate change; Marine GWP increased by 14% and experienced a rate change of 7%; Political, accident & contingency GWP grew 28% and witnessed a negative 1% rate change; Property saw its GWP decline by 6% in the quarter and experienced a rate change of 6%; Reinsurance saw its GWP grow by 14% and recorded rate change of 3%; and Specialty lines GWP grew by 24% with a 1% rate change.
Despite solid premium growth, the firm notes that the more active claims environment witnessed in 2018 has continued, adding that it has strengthened some reserves in certain areas of its short tail business, notably in relation to typhoon Jebi, the Woolsey wildfire and also a portfolio of US trucking business within its marine account.
Beazley also offers an update on Brexit within its Q1 trading announcement, stating that it is well prepared for any outcome, and that it has started transacting business successfully through Lloyd’s Brussels, while its European Insurance company has written $13m of premium in Q1 2019.
