Beazley has delivered its best half-year combined ratio since 2015 despite a decrease in profit.
In the six months ended 30 June, the insurance firm posted a profit before tax of £18.6m ($22.3m) – down 87 per cent on last year – while its returns on annualised equity went down by 14 per cent.
Gross premiums, on the other hand, went up by 26 per cent on last year’s levels, while rate on renewal portfolio jumped 18 per cent.
“A challenging investment environment has impacted profit; however I’m delighted that we have achieved our best combined ratio at a half year since 2015,” said chief executive Adrian Cox.
“Given the positive experience in the first half of this year we are in a position to update our combined ratio guidance to high 80s for 2022 assuming average claims experience for the second half of the year.”
Combined ratio is a key measure of insurers’ profitability and it indicates higher returns if the level remains below 100 per cent.
Following the results, shares were up by 9.75 per cent.
Analysts, including Jefferies and Goldman Sachs, awarded the FTSE-250 firm, a Buy recommendation.
The Lloyd’s of London insurer made the headlines yesterday when it announced that chairman David Roberts will step down from Beazley’s board this autumn to become chair of the Bank of England’s Court.