Specialist insurer Beazley has reported higher than expected gross written premiums (GWP) for the first nine months of the year, as well as a year to date rate change of 23% across the business.
For the nine month period ended September 30th, 2021, Beazley has announced GWP of roughly $3.3 billion, representing a year-on-year increase of 29%.
Premium growth was evident in all business lines, with the most profound rises seen in Market Facilities and Cyber & Executive Risk. In Market Facilities, GWP increased by 51% to $145 million, while Cyber & Executive Risk premium jumped by 44% to $991 million.
In Specialty Lines, Beazley has reported GWP growth of 31% to $979 million for the nine month period, while Property premiums expanded by 23% to $435 million.
Additionally, 13% premium growth was recorded in the Political, Accident & Contingency division to $231 million; 11% GWP growth was seen in Marine to $283 million; and 8% premium growth occurred in Reinsurance to $207 million.
Turning to rate increases and Beazley notes that the main drivers in 9M 2021 were its Cyber & Executive Risk and Specialty Lines division, which reported a year to date rate change of 48% and 15%, respectively.
Beazley says that the Marine, Property and Reinsurance units continue to perform broadly as expected, with rate increases of 9%, 10%, and 13%, respectively, for the first nine months of the year.
In Market Facilities, the year to date rate change was 15% for 9M 2021, while the rate change for its Political, Accident & Contingency business averaged 6% during the period.
“I am delighted that the momentum from the first half has persisted into the second with rate rises and premium growth that have exceeded our expectations. We continue to be strongly capitalised and are well placed to take advantage of these favourable market conditions.
“I remain excited about the opportunity in the cyber market and with our disciplined and prudent risk selection, our market leading product offering and the ongoing investment in our cyber infrastructure, I believe we are in a great position to capitalise on this,” said Adrian Cox, Chief Executive Officer (CEO) of Beazley.
During the third quarter of 2021, Beazley has incurred catastrophe losses, net of reinsurance, of $125 million, which includes $85 million of hurricane Ida losses and $40 million of losses related to the flooding in Europe in July.
The firm also notes that the downward trajectory on the frequency of its ransomware claims has continued in light of the remediation action the firm has been taking since October of last year.
So far in 2021, total natural catastrophes have been in excess of the relevant catastrophe margins held in Beazley’s reserves. As a result, the company expects its full-year 2021 combined ratio to be in the mid-90’s assuming claim experience is as expected for the rest of the year.
On the asset side of the balance sheet, Beazley’s investments returned 0.2% in Q3 and 1.4%, or $99 million in the nine month period.