In This Article:
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Profit Before Tax: Record profits of just over $1.4 billion.
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Shareholder Returns: $700 million returned to shareholders through increased dividends and a $500 million share buyback program.
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Combined Ratio: Undiscounted combined ratio of 79%.
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Insurance Written Premium Growth: 10% year-on-year growth, with 8.5% excluding recategorization impacts.
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Property Insurance Written Premium: 26% increase following last year's 64% growth.
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Return on Equity: Average of 17.7% over the last five years and just over 15% over the last ten years.
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Dividend Increase: Ordinary dividend increased to 25p.
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Investment Return: $574.4 million, a 5.2% return, the highest-ever absolute contribution.
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Reserve Releases: $144.5 million in reserve releases, representing 2.9% of net insurance revenue.
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Solvency Capital Ratio: 302% gross of any distributions, 264% net after distributions.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Beazley PLC (BZLYF) reported record profits for the second consecutive year, with profits exceeding $1.4 billion.
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The company announced a significant return to shareholders, including a $700 million distribution through increased dividends and a $500 million share buyback program.
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Beazley PLC (BZLYF) achieved a combined ratio of 79%, within their guidance of around 80%, demonstrating strong underwriting and claims handling capabilities.
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The company experienced a 10% year-on-year growth, driven by a 26% increase in property insurance written premiums.
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Beazley PLC (BZLYF) successfully launched Quantum, a consortium allowing deployment of a $100 million primary line size, well-received in the marketplace.
Negative Points
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The company faced challenges with a more normalized attritional loss ratio and an active hurricane season impacting results.
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There was a slight rate decrease in the second half of the year, making growth more difficult in a competitive market.
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The specialty risks segment was impacted by social inflation and a competitive rate environment, requiring active cycle management.
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The company had to strengthen reserves for MAP due to geopolitical uncertainties, impacting financial results.
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Beazley PLC (BZLYF) anticipates a mid-80s combined ratio for 2025, reflecting expected market softening and provision for recent wildfires.
Q & A Highlights
Q: Can you explain the rationale behind the combined ratio guidance for 2025, given the previous year's performance and current market conditions? A: Adrian Cox, CEO, explained that the guidance for a mid-80s combined ratio reflects the impact of the LA wildfires and expected market softening. The previous year's low 80s guidance was adjusted to account for these factors, maintaining a consistent logic in their projections.