Beazley PLC's (LSE:BEZ) half-year results were well ahead of forecasts with analysts suggesting the outlook remains favourable for the Lloyd’s-based insurer.
Profits were boosted by investment gains and positive discounting effects, but stripping these out Peel Hunt said adjusted profits of US$507m were 36% ahead of its estimate.
The broker has a target share price of 750p and an ‘add’ rating.
Panmure Liberum said the numbers were excellent. Insurance written premiums of $3.1bn, up 7% year on year, were in line with expectations, driven by growth across the property and cyber lines.
"Pricing continues to remain attractive, particularly in property and specialty," said Panmure.
Whilst cyber Insurance rates are down, management believes they remain at attractive levels given the cumulative rate increase since 2018.
"Underwriting margins were very strong with an undiscounted combined ratio of 81%, 7ppts better than the prior period and 4ppts better than consensus expectations.
"Overall this translated to a record 1H24 PBT of $729m, up 99% year on year, and a massive 70% beat vs expectations, providing an attractive RoE of 28% annualised.
"The pricing and growth opportunity continues to remain attractive in its selected lines of business."
UBS also said the results were well ahead of estimates, but it also noted the improved guidance reserve confidence and changes to financial assumptions that boosted the bottom line number.
The positive tone will be appreciated by investors, said UBS, which has a 'buy' rating and a 920p price target.
Shares rocketed 13% to 722.5p.