Rate hikes exceed expectations to drive bumper growth for Beazley in Q3

Re/insurer  Beazley enjoyed very strong growth in the third quarter across all its divisions as the company’s CEO said premium growth has exceeded expectations and noted it eyes exciting opportunities in the cyber space.

The company’s gross premiums written increased by 29 percent to reach $3.27 billion; it noted that its premium rates on renewal business increased by 23 percent – ahead of its expectations.

It said its Q3 catastrophe loss estimates are $125 million net of reinsurance, $85 million in respect of Hurricane Ida and $40 million for European floods. It said that total natural catastrophes this year have been in excess of the relevant catastrophe margins held within its reserves. The full year combined ratio is now expected to be mid 90s assuming claims experience is as expected for the remainder of 2021.

It also said underwriting action taken since October 2020 continues to have a positive impact on cyber ransomware trends.

It noted that it has seen rates increase across all its divisions, but the main drivers of the premium growth are Cyber & Executive Risk and its Specialty Lines divisions. Rates within the Cyber & Executive Risk division are up 48%, it noted, driven predominantly by Cyber where the rates continue to exceed expectations.

In Specialty Lines, it said it has benefited from the continued hard market with particularly good rate increases within International Financial Lines. Its Marine, Property and Reinsurance divisions continue to perform broadly as expected with respect to both growth and pricing.

It also noted that the contingency market remains in a relative state of flux as a result of COVID-19 and growth is slightly below expectations within its PAC division.

Adrian Cox (pictured), chief executive officer, Beazley, said: “I am delighted that the momentum from the first half has persisted into the second with rate rises and premium growth that have exceeded our expectations. We continue to be strongly capitalised and are well placed to take advantage of these favourable market conditions. I remain excited about the opportunity in the cyber market and with our disciplined and prudent risk selection, our market leading product offering and the ongoing investment in our cyber infrastructure, I believe we are in a great position to capitalise on this.”

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