Specialist insurer Beazley has reported robust growth in the first half of 2023, reporting a 13% increase in gross premiums written (GPW) to $2.9 billion.
Alongside strong GPW growth, Beazley has announced a significant rise in net premiums written (NPW) for the period of 28% to approximately $2.3 billion.
Much of the firm’s growth in H1 2023 was within its property business, where GPW grew 66% to $791 million, with a year-to-date rate change of 22%.
Beazley notes that it continues to take advantage of favorable property market conditions, with property reinsurance “growing as expected and property insurance slightly better than planned for.”
In fact, the firm says that the hardening reinsurance market has driven rate increases in the primary market more quickly than anticipated.
Top-line growth was also driven by the cyber segment, which recorded H1 2023 GPW expansion of 14% to $540 million, with a year-to-date rate change of -3%.
According to Beazley, headwinds experienced in H1 relating to war wordings are beginning to recede, although the market remains competitive. The firm remains confident in the long-term growth outlook for the cyber space, notably in Europe.
Partially offsetting the growth in property and cyber, Beazley has reported a decline in GPW of 1% in digital risks to $110 million, as well as a 5% dip in MAP risks GPW to $517 million, and a decline of 1% in specialty risks to $935 million. In the latter, Beazley notes that very challenging conditions continue in D&O.
Overall, premium rates on renewal business increased by 5% in H1 2023, compared with 18% in H1 2022.
Adrian Cox, Chief Executive Officer (CEO), said: “The excellent conditions in the property market persisted into the second quarter and we continued to take advantage of those, delivering a strong performance on growth for the group in the first half of 2023.
“With premium written in line with our expectations, we are confident of delivering our growth guidance for the year.”
Turning to investments, and Beazley has announced growth in investments and cash of 21% to $9.6 billion, with a year-to-date investment return of 1.5%, compared with a negative return of 2.5% in H1 2022.