Specialist re/insurer Beazley has reported that Q1 2023 gross written premiums increased by 12% YoY to $1.37 billion as the firm remains “confident of delivering strong growth and profitability.”
According to Beazley, its Cyber Risks class performed well with 24% growth in Q1 ($280 million of GWP), reflecting expansion in Europe despite more modest rate increases as well as the market adjusting to updated war exclusions.
The growth also includes some favourable prior-year premium adjustments, the firm explains.
Beazley continued, “We have taken advantage of the significant opportunity in the property (re)insurance market(s) which we had been anticipating.
“Property Risks grew by 56% in Q1 ($347 million of GWP), with both exposure growth and high double-digit rate increases in evidence.”
With that in mind, the firm noted that “combined ratio guidance remains unchanged at the high 80s for 2023 full year.”
Meanwhile, Beazley states that given the more attractive current market conditions in the aforementioned classes of business, it has reduced its risk appetite in Specialty Risks ($428 million of GWP), which remains impacted by several headwinds including a very competitive rating environment in D&O and ongoing social inflation within the firm’s healthcare book.
Total net premiums written rose to $1.07 billion in Q1 of 2023, which marked a 24% increase from Q1 2022’s $859m. Premium rates on renewal business in Q1 this year also increased by 10%.
Adrian Cox, Beazley’s Chief Executive Officer, commented, “The first quarter saw us deliver good headline growth in line with our expectations, underpinned by growth in property, where we are taking advantage of the excellent and continuing market conditions.
“Our diversified business, together with our ability to adapt according to the underwriting pricing cycles, allow us to adjust as opportunities and challenges emerge.
“We are positive in terms of our outlook for the first half and are confident of delivering our full year guidance.”
