Beazley Profits Slide, Shares Drop 8%

Shares in Beazley (LON:BEZ) are down more than 8% to 838 pence on Wednesday, their lowest level since April, after the specialist insurer posted a drop in first-half profit. 

The stock remains up 1.8% this year and has gained 13.1% over the past 12 months.

Pre-tax profit for the six months to June 30 plunged 31% year-on-year to $502.5 million, from $728.9 million a year earlier. 

The undiscounted combined ratio, a measure of underwriting profitability, came in at 84.9% from 80.7%, while the annualised return on equity declined to 18.2% from 28.4%.

Insurance written premiums rose 2% to $3.19 billion, compared with growth of 6.9% in the same period last year. 

Earnings per share fell 24% to 52.5 pence. The group maintained full-year guidance for its combined ratio in the mid-80s but trimmed its premium growth forecast to the low-to-mid single digits.

“The first half of 2025 confirms that geopolitical uncertainty remains, technology is transforming business and the effects of climate change are ever present, all of which are creating new risks and decreasing predictability,” the company warned.

Chief executive Adrian Cox said: “Growth of 2.0% reflects our disciplined approach and is fully aligned with our strategy of prioritising rate adequacy and long-term profitability over short-term income.” 

“Our depth of experience in operating within a cyclical environment means we know when to take risk, and when to pull back.”

Beazley said its investment portfolio delivered a $308.5 million return in the period, equivalent to an annualised 5.4%, up from $251.7 million last year. The company added it would continue focusing on “accessing the right opportunities” while navigating “periods of elevated uncertainty.”