- Posts
- 10,811
- Posts Power
- 10,811.0%
- Liked
- 890
- Joined
- Jan 2, 1996
- Website
- inviteshop.us
The London-based insurer’s trading update revealed a modest 2% increase year-on-year (YoY) in total insurance written premiums, which was impacted by adjustments to prior-year premium estimates.
In the first quarter, Beazley’s total insurance written premiums amounted to $1,511 million, falling short of the $1,590 million anticipated by RBC estimates.
The company also reported net insurance written premiums of $1,249 million, marking a slight 1% rise YoY. Despite the underwhelming growth in premiums, Beazley’s investment income showed a positive trend, increasing by 8% YoY to $136 million.
The company reiterated its full-year guidance for 2025, projecting a mid-single-digit growth in gross insurance written premiums and a cross-cycle return on equity (ROE) of 15%.
However, the update highlighted that the yield on its fixed-income portfolio had decreased to 4.4% from 4.6% at the end of the previous year, with the average duration holding steady at 1.6 years.
Beazley also addressed the impact of external factors on its business, stating that it does not expect any direct claims exposure from the recently imposed trade tariffs in its political risk, trade credit, or specialty book, as increases in tariffs are not insured perils under its policies.
The first-quarter claims experience included a notable California Wildfire loss of $80 million, which had been previously reported during the fiscal year 2024 results.
This loss, among other factors, has influenced the market’s response to Beazley’s trading update, as reflected in the decline of its stock during the trading session.
Is BEZG truely undervalued?
With BEZG making headlines, investors are asking: Is it truly valued fairly? InvestingPro's advanced AI algorithms have analyzed BEZG alongside thousands of other stocks to uncover hidden gems with massive upside. And guess what? BEZG wasn't at the top of the list.