The British insurance industry had been recovering from large pandemic-related claims due to rising premium rates when sanctions against Russia and the devastation in Ukraine drew the sector back as businesses filed claims to cover losses from the crisis.
"To date, we have seen a small number of claims relating to the (Ukraine) conflict, and we remain confident in our combined ratio guidance of around 90% for the full year," said Chief Executive Officer Adrian Cox in a statement.
The Lloyd's of London insurer stated that the $50 million set aside for losses resulting from the Ukraine conflict does not account for potential claims for aircraft stranded in Russia, owing to the country's complex and uncertain environment.
S&P Global, a ratings agency, estimated in late March that the conflict would cause losses in the specialty insurance market ranging from $16 billion to $35 billion, including claims in aviation, cyber, political risk, and marine war insurance.
Hiscox, Beazley's main rival, set aside $40 million on Thursday for expected losses related to the Ukraine crisis, while Lancashire estimated net losses from the war at around $20 million to $30 million last month.
Beazley, which provides casualty, property, cyber, and political risk insurance, said gross premiums written for the three months ended March 31 increased 27 percent to $1.23 billion, boosted by rate growth in the cyber unit, from $971 million the previous year.