Beazley PLC (LSE:BEZ) shares slumped 10% in Tuesday's trade, after the insurer this morning revealed that new premiums were struggling to keep up with lost renewals.
It reported only a 1% rise in insurance written premiums to $4.67 billion for the nine months to September 30, while net written premiums increased 4% to $3.93 billion. At the same time, the insurance company said renewal rates declined 4% across the portfolio, and it continues to expect 'flat to low single-digit premium growth' for the full year.
Beazley said underwriting discipline remains the main focus.
“Market conditions are evolving at pace across several of our lines, and we've maintained the same disciplined approach we set out at the half year,” chief executive Adrian Cox said. He added that the group is prioritising profitability over volume, which is affecting growth.
Beazley allocated $500 million of capital to establish a new Bermuda platform that's expected to support expansion into the alternative risk transfer market from 2026.
The company noted that natural catastrophe claims were well within expected margins and investment income reached $458 million, equivalent to a 3.9% return year-to-date.
“Near-term pricing and premium growth do seem a little soft in 2025, while the launch of a $500 million investment in a new platform based in Bermuda may also limit scope for further near-term cash returns," commented Russ Mould, investment director at AJ Bell.
"This is a difficult combination for a stock that reached a new all-time high in the summer and trades at a big premium to net asset value (NAV), even if the company’s long-term track record and plans still stand up to scrutiny.
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