Beazley PLC reported its interim results for the six months ended 30 June on 23 July. Although the group reported increased gross and net premiums and an improved combined ratio, profit before tax was down 27%, largely as the group reported nil investment return for the half year. Following interest rate rises in the US in the past six months, gains in the first rate rises in the quarter were cancelled out by mark to market losses in the second quarter.

In summary the results are

 

 

Six months ended

30/06/13

Six months ended

30/06/12

% Change

Gross premiums written

$1,066.7m

$1.013.1m

5%

Net premiums written

$758.0m

$650.8m

16%

Net earned premiums

$758.8m

$703.3m

8%

Profit Before tax

$82.3m

$112.9m

(27%)

Combined ratio

89%

91%

2%

Prior year release

$60.8m

$47.6m

27%

Investment return

$0.3m

$36.1m

(99%)

 

Although the group is reporting premium rate increases across the portfolio, the pace of change and the rate of premium growth slowed in the second quarter. Jeremy Bray used the Beazley rate chart at our recent round of client meetings and we have updated the chart below to reflect the 2013 rating levels.

The full results can be found here and the analysts’ presentation here