Beazley, a specialist insurer, reported a 22% increase in gross written premiums compared to the first nine months of 2021. Meanwhile, it reported that premium rates on renewal business had increased by 17%, compared to 23% the previous year.
It also stated that its estimated losses from Hurricane Ian are $120 million, net of reinsurance.
Beazley CEO Adrian Cox stated, “We have had a strong underwriting performance over the quarter with all divisions continuing to grow. As expected, overall rates have moderated, however we are seeing increased demand across many lines of business which supports our growth ambitions.”
“Whilst mark to market losses have occurred due to rising yields in our fixed income portfolio, rising yields also mean we anticipate significant future investment returns. We remain confident of our guidance of high 80s combined ratio assuming claims experience is as expected for the remainder of the year.”
Among the various segments, Beazley stated that it had seen rate increases of 51%, though this trend had moderated in the third quarter of this year.
The firm also predicted a more competitive D&O market than it did at the start of the year. This has resulted in 10% growth in its specialty risks segment, according to the company.
In other words, “our investments returned a loss of 1.2%, or $96 million, in the third quarter of 2022, bringing the year-to-date loss to 3.6%, or $289 million.” This is due to the unprecedented rise in interest rates in the first nine months of the year, which has resulted in mark-to-market losses in our fixed income portfolio. Risk assets have also suffered, with global equity markets falling by more than 25%.
“At the end of September, our fixed income portfolio had a duration of 1.9 years and a market yield of 4.6%, indicating the much higher returns we hope to achieve in future periods once yields stabilize.”