Lloyd's of London insurer says hurricane losses will not impact profit target

Beazley, the Lloyd's of London insurer, has reported a notable increase in insured premiums and remains on course to meet its annual profit goals, notwithstanding the impact from hurricanes Helene and Milton.

The firm disclosed in a recent trading update for the nine months concluding on 30 September 2024, that it achieved a premium growth of seven percent, resulting in $4.6bn (£3.6bn), as reported by City AM.

Despite facing estimated costs of $125m (£97m) to $175m (£136m) due to the two natural disasters, the insurer still anticipates an undiscounted combined ratio of 80 percent for the end-of-year figures, indicating continued profitability in underwriting activities.

For the first nine months of the current fiscal year, Beazley also saw an investment income surge to $513m (£400m), constituting a robust 4.7 percent return, in stark contrast to the 2.1 percent earned within the same period the preceding year.

Adrian Cox, Chief Executive Officer, expressed his pride in the company's performance amid the year's challenges: "I am extremely proud of how our business has navigated the volatile claims environment we have seen so far this year. Our commitment to disciplined underwriting and our risk selection expertise mean that, despite an active hurricane season and a global cyber event, we expect to deliver an undiscounted combined ratio of around 80% for the full year, consistent with our guidance at our interim results in August."

Despite the positive trading update, the company did highlight that the industry's faster-than-average premium growth observed over the past three years has slowed down.