Specialist insurer Beazley has revealed that insurance written premiums in Q1 of 2024 increased by 7% compared to the previous year, reaching $1.48 billion.
Adrian Cox, Beazley’s Chief Executive Officer, noted that it has been a “solid start to the year” with the firm demonstrating its ability to grow whilst exercising underwriting discipline.
Cox added, “We are confident of delivering our gross growth guidance for the year of high single digits. We remain optimistic about the outlook for our business in 2024 and beyond, focussing on continued, targeted growth and active capital management as the rate environment normalises.”
Beazley’s net insurance written premiums in Q1 of 2024 also increased, climbing 11% from $1.12 billion last year to $1.24 billion.
The firm’s investment income in the quarter was $126 million, or 1.2% year to date. Beazley explained that financial markets were buoyed by resilient US economic data in Q1, with its equity, credit and hedge fund investments all producing strong returns.
Beazley continued, “Risk-free yields rose, as rate cut expectations subsided, resulting in more modest returns from our fixed income investments.
“However, the current yield of our fixed income portfolio (5.1% at the end of March) leaves it well placed to make a good contribution to our returns going forward.”
On the back of this positive start, the firm has stated that its combined ratio guidance for the year remains in the low 80s on an undiscounted basis.
Back in March, Beazley reported a full year 2023 record pre-tax profit of $1.25 billion and a combined ratio of 71%, with strong growth in the insurance service result of 52% and an investment return of 4.9%.
At the time, Cox observed, “We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well positioned to continue successfully growing our business and I remain confident that Beazley will see strong, long-term performance.”
