Beazley plc Reports Record Profit and Share Buyback
Beazley plc has achieved a record-breaking profit before tax of US$1.42 billion for the year ending December 31, 2024, marking a 13% increase from the previous year’s US$1.25 billion. The specialist insurer has also unveiled a US$500 million share buyback initiative, coupled with substantial growth in written premiums.
Insurance written premiums saw a 10% rise to US$6.16 billion, compared to US$5.60 billion in 2023. Meanwhile, net insurance written premiums climbed to US$5.15 billion from US$4.70 billion the prior year. Despite these positive financial results, Beazley’s undiscounted combined ratio worsened to 79%, up from 74% in 2023, while the discounted combined ratio slightly decreased to 75% from 71%. The company’s return on equity also fell to 27% from 30%.
Beazley has reported an initial estimate of US$80 million in claims due to the Californian wildfires. CEO Adrian Cox expressed satisfaction with the results, stating, “Our record profit of US$1.4 billion, along with a 79% undiscounted combined ratio and strong premium growth, underscores the strength of our expertise. I am thrilled with our company’s achievements amidst a challenging claims environment, including an active hurricane season.”
Cox further noted, “This robust performance supports a US$500 million share buyback and a rebase of the ordinary dividend to 25p, a 76% increase. We remain well-capitalized to seize growth opportunities in a changing market and sustain our strong financial performance over the long term.”
Looking forward, Beazley has provided a mid-single-digit growth forecast for gross insurance written premiums in 2025, with an anticipated undiscounted combined ratio in the mid-80s range.
Beazley Stock Performance
Beazley plc (LON:BEZ) shares reached a new 52-week high during mid-day trading on Monday. The stock peaked at GBX 882.50 (approximately US$11.21) and last traded at GBX 879.50 (around US$11.18), with a trading volume of 2,084,237 shares. The stock previously closed at GBX 876.50 (about US$11.14).
Beazley shares increased by 1.9%, maintaining a fifty-day moving average price of GBX 827.80 and a 200-day moving average price of GBX 792.39. The company boasts a market capitalization of £6.87 billion, a price-to-earnings ratio of 5.59, a price-to-earnings-growth ratio of 1.57, and a beta of 0.68.
