Beazley has reported that its gross premiums written increased by 10% to $631 million at the end of first-quarter 2018, as premium rates increased by 3% on its renewal business.
The specialist insurer’s reinsurance division saw a particularly strong underwriting performance, with rates increasing 7% across the portfolio and premiums also increasing by 7% to $90 million.
Moreover, the property team saw premiums rise by 29% year-on-year to $108 million as the market adjusted to the unusually high levels of catastrophe losses experienced at the end of 2017.
Andrew Horton, Chief Executive Officer (CEO) at Beazley, commented on the results: “Beazley made a strong start to 2018 with premium growth of 10% on average across the portfolio. We have also seen rate increases across many lines of business as the market recalibrates its pricing in the wake of the high catastrophe activity seen in late 2017.”
Additionally, Beazley’s specialty lines division saw premiums increase 6% to $295 million thanks to a 17% increase in business written in the U.S, and its political, accident, and contingency division also saw strong growth as premiums rose 14% year-on-year.
However, Beazley’s net investment results were less promising with losses of $1.1 million recorded, down from its gain of $42.5 million at Q1 2017.
The company attributed its weak investment performance to rising U.S bond yields, widening credit spreads on corporate debt, and volatile equity markets, although it maintained a positive outlook as fixed income yields continue to rise.
“While our investment return is lower than we would have hoped at this stage, US interest rates are now materially higher which will benefit the business going forward,” Horton explained.
