(Alliance News) - Beazley PLC on Tuesday said it achieved "record" profit for 2024, boosted by higher premium growth, but warned of a softening pricing environment in 2025. The insurer also announced a USD500 million share buyback and rebased its dividend.
Beazley is a London-based specialist insurance underwriter, managing six Lloyd's of London syndicates.
Pretax profit rose 13% to USD1.42 billion last year from USD1.25 billion in 2023. Net insurance written premiums grew 10% to USD5.15 billion, while gross written premiums increased 10% to USD6.16 billion from USD5.60 billion.
Beazley's undiscounted combined ratio deteriorated to 79% from 74%, while the discounted combined ratio stood at 75%, compared to 71% in the prior year. A combined ratio below 100% indicated profit on underwriting, so the lower the better.
Earnings per share rose 10% to 137.0 pence from 124.8p, with net assets per share increasing to 570.5p from 468.6p.
The company announced a "one-off rebasing" of its ordinary dividend, increasing it by 76% to 25.0p per share from 14.2p in 2023. It also unveiled a new USD500 million share buyback programme following the completion of a USD325 million buyback in September.
Looking ahead, Beazley said its current expectation is that prices will "continue to soften this year". The insurer forecasts mid-single-digit gross premium growth in 2025, with an undiscounted combined ratio in the mid-80s, factoring in provisions for the January California wildfires. Beazley has allocated an initial USD80 million for wildfire-related claims.
Chief Executive Officer Adrian Cox said: "Our record profit of USD1.4 billion, along with a 79% undiscounted combined ratio and strong premium growth, is a testament to our expertise. We remain well-capitalised to take advantage of growth opportunities in an evolving market while sustaining strong financial performance over the long term."
Shares in Beazley were up 0.6% at 899.00 pence in London on Tuesday morning.
By Eva Castanedo, Alliance News reporter
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