Beazley PLC's (LSE:BEZ) shares fell 8% after the Lloyd’s of London insurer reduced its guidance for the year.
It came as the company reported a near one-third drop in half-year profit, squeezed by slowing premium growth, higher expenses and heavier claims.
Pre-tax profit for the six months to 30 June slid to US$502.5 million from US$728.9 million a year earlier, as gross written premiums rose just 2% to US$3.19 billion, well below last year’s pace.
The combined ratio deteriorated to 84.9% from 80.7% on the back of Californian wildfires, ransomware incidents and rising US litigation costs.
Operating expenses jumped, driven by incentive payments and technology investment. While investment income climbed to US$308.5 million, it could not offset the weaker underwriting result. Guidance for a mid-80% combined ratio was maintained.
Peel Hunt said: " Beazley is reducing its premium growth guidance down to low-to-mid single digits for 2025, given signs of a more competitive market whilst maintaining guidance for a mid-’80s CoR [combined ratio]."
The broker says 'add' up to 995p. The stock fell 77p to 835p.