Andrew Horton, the Chief Executive Officer of specialist insurer Beazley, anticipates the rate momentum seen over the first six months of 2020 to continue into next year and enable double digit top-line growth for the company.
“We expect this momentum to continue into 2021 because there doesn’t seem to be anything at this point in time likely to stop it,” explained Horton at Beazley’s half year press briefing.
“It’s on the back of relatively poor profitability of the industry and a number of years’ of rate decreases across many lines. So I think on the back of that, we expect these rate increases to continue.”
Horton noted that the market needed these rate increases before COVID-19 ever came along.
“I think the COVID-19 losses have just given further momentum to a market that needed to turn.”
Horton says Beazley’s aim is to try and mitigate the impact of COVID-19 as much as it can by taking action on its liability classes.
As for its combined ratio for the year, Horton expects it will be around 100%, assuming the company has an average second half.
Horton added that he’s anticipating lower investment return in the second half based on the running yield of the portfolio.