Property boosts growth at Beazley but it quits construction and engineering

Beazley enjoyed solid growth in the first nine months of the year, partly driven by big increases in its property unit and average rate increases on renewal business of 3 percent; it also revealed it will cease underwriting construction and engineering business because of unsustainable rates in these sectors.

The re/insurer’s gross premiums written increased by 11 percent to reach $1.95 billion in the period. It said growth was achieved across all divisions. Specialty lines, its largest division, grew by 11 percent to $1 billion driven by a strong performance in the US.

Its political, accident and contingency division achieved premium growth of 5 percent year on year, writing $183m in the nine months to 30 September 2018. The growth was driven by a strong performance of the accident & health portfolio in the US and was in spite of a continued rate decrease primarily in terrorism.

It added that the property team continue to benefit from the positive rate change as a result of last year’s catastrophe events. Premiums have increased by 21 percent year on year to $340 million.

The company also said that it continues to invest in growth and has recently launched new SL international products in a number of European countries. It also revealed it will quit underwriting construction and engineering business. This business accounted for approximately 10 percent of its property division’s premiums in 2017. “After careful analysis, we concluded it was unlikely to satisfy our cross-cycle profitability requirements in the foreseeable future,” it said.

Andrew Horton, CEO, said: “Our business continues to deliver double digit premium growth and has been aided by higher rates in some classes following last year’s catastrophe losses. Geographically, the main engine of our premium growth continues to be the US market, where we saw premiums rise 18 percent relative to the first nine months of last year. We expect this positive momentum to continue and are aiming to deliver high single digit growth for the group again in 2019.”

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