Specialist insurer Beazley has reported a 16% rise in gross premiums written (GPW) to $971 million for the first quarter of 2021, alongside premium rates on renewal business that came in above expectation.
Rate momentum on renewal business saw an increase of 16% during Q1 2021, compared with 8% for the prior year quarter.
The year-on-year increase in GPW reflects growth in all business segments, with the exception of Contingency, which saw GPW fall by 8% in Q1 2021 to $84 million – with a year-to-date rate change of 6%.
The Cyber & Executive Risk division achieved premium growth of 19% to $232 million for Q1 2021, driven in part by continued growth in Executive Risk as the market continues to respond to the claims environment in D&O. Within the unit, Beazley has reported a year-to-date rate change of 32%, which exceeded its expectations.
In the Marine segment, GPW remained flat at $100 million, while the year-to-date rate change totalled 12% for the first quarter.
Beazley’s Market Facilities segment has reported a 35% increase in GPW for Q1 2021 to $42 million, with a year-to-date rate change of 9%.
In the Property business, GPW spiked 24% to $113 million with a rate change of 9%. In Reinsurance, GPW increased by 10% to $97 million with a rate change of 14%.
According to Beazley, the Reinsurance, Property and Marine segments are performing as expected, in terms of both premiums and pricing.
Lastly, in the insurer’s Specialty division, premiums were up by 24% to $303 million, with a rate change of 14%.
“We have had a positive start to the year with good rate momentum that is well ahead of our expectations as well as continued strong targeted growth. We expect favourable market conditions to continue and are well positioned to take advantage of them given our capital surplus remains within our preferred range,” said Adrian Cox, Chief Executive Officer (CEO).
For the first quarter of 2021, Beazley has announced estimated catastrophe losses of $70 million, net of reinsurance, mostly driven by the winter storms in the U.S.
Regarding COVID-19, Beazley has confirmed that its first party loss estimate remains unchanged at $340 million, net of reinsurance.
However, if a resumption to some form of normality fails to materialise in the second half of 2021, then Beazley notes potential for an additional $50 million of claims, net of reinsurance, to the end of 2021.
The Ever Given marine loss has had a negligible impact on Beazley’s first quarter 2021 performance.
On the asset side of the business, Beazley has reported an investment return of $27 million for Q1 2021, compared with an investment loss of $55 million for the same period a year earlier.
The specialist insurer has also announced today that its Chief Risk Officer (CRO), Andrew Pryde, will be leaving the firm at the end of May, 2021.
Rob Anarfi, Global Head of Compliance, is to combine his current role with that of the CRO to become the Chief Compliance and Risk Officer.