Lloyd’s of London insurance group Beazley PLC (LON:BEZ) achieved a sharp increase in half-year profits on the back of a 12% increase in gross premiums.
Profit before tax in the first half of 2019 rose by 189% to US$166.4mln from US$57.5mln in the first half of 2108.
READ Beazley profits halve in 2018 but insurer guides to stronger returns this year
Gross premiums written rose by 12% to US$1,483.6mln from US$1,323.8mln the previous year.
The combined ratio, which is a measure of how well the company is deciding who and what to insure, improved to 100% from 95% in the same period of 2018.
The company has declared an interim dividend of 4.1p, up from the 3.9p interim dividend paid out last year.
"Claims concentrated largely in our marine and reinsurance divisions drove our combined ratio to 100%, but premium rates have adjusted accordingly and margins in many lines of business now look healthier than they have in some years. We expect to achieve double-digit growth over the full year while continuing to reserve prudently,” said Andrew Horton, Beazley’s chief executive officer.
"Our investment return was 3.3% for the first half of 2019, with nearly all asset classes performing strongly. Investment returns are expected to be lower in the second half of the year,” he added.
Shares rose 2.8% to 551p in morning trading.