Beazley plc has released its trading statement for the first quarter of 2025, reporting a 2% increase in insurance written premiums to $1.51 billion, up from $1.48 billion in the same period last year. The company’s net insurance written premiums rose by 1% to $1.25 billion, compared with $1.24 billion in Q1 2024.
Financial Highlights
Renewal premium rates declined by 4% in Q1 2025, reversing a 1% increase reported in the prior-year period. Beazley posted investment income of $136 million, representing a 1.2% return, which is in line with the same return rate reported a year earlier.
Premium Growth and Guidance
Despite softening market conditions in the first three months of the year, Beazley maintained its underwriting discipline. The quarterly result was affected by updates to prior-year premium estimates across multiple lines. The company noted that Q1 performance does not reflect its expectations for the full year, with overall growth still expected to fall within the mid-single digits range.
Segment Performance
- Cyber Risks: Beazley noted continued competition in the cyber risks market and is concentrating capital deployment in areas offering the best risk-reward balance. Growth is strongest in Europe, while rate adequacy remains higher outside North America.
- MAP Risks: Beazley expects geopolitical uncertainty to contribute to demand over the year. The Q1 result was weighed down by premium estimate adjustments, though strong growth is still anticipated by year-end.
- Property Risks: The Property Risks portfolio continued to expand, with rate levels described as adequate despite a 6% decline in renewal pricing during the first quarter.
- Specialty Risks: Subdued capital markets activity affected growth in some products within this division. Expectations remain for flat to moderate growth in that area through the year.
Claims and Inflation Risks
Beazley’s exposure to California wildfire losses remains approximately $80 million, consistent with year-end 2024 disclosures. The company confirmed there is no direct claims exposure from trade tariffs in its political risk, trade credit, or specialty lines. Potential inflation-related impacts are integrated into the firm’s underwriting and claims management processes.
Investment Performance
Beazley’s investment portfolio yielded 1.2% in Q1, generating $136 million. The firm cited increased volatility in equity and corporate bond markets following trade policy announcements by the US government. The average yield on Beazley’s fixed income investments stood at 4.4% as of March 31, with an average duration of 1.6 years. The portfolio is described as well diversified and conservatively positioned.
Beazley’s chief executive officer, Adrian Cox, emphasized the company’s maintained underwriting discipline despite challenging market conditions. The company’s guidance for gross insurance written premium growth remains at mid-single digits for the year, with its combined ratio guidance also unchanged in the mid-80s range on an undiscounted basis.
