Beazley PLC (LSE:BEZ) reported estimated losses of US$50m arising from the war in Ukraine, excluding aviation, and said rates in its Cyber division have doubled in the first quarter of 2022.
The FTSE 250-listed insurer said it has so far seen "a small number of claims with respect to the conflict" and remains confident in is on track to achieve a combined ratio guidance of “around 90%”.
Premiums grew 27% in the first quarter of the year, Beazley said, which was better than expected, primarily driven by the Cyber & Executive Risk division.
An investment loss of US$92mln was worse than expected, however, driven by non-economic unrealised losses.
“Whilst the overall rating environment remains positive, the rate change across parts of our business is beginning to moderate,” said chief executive Adrian Cox.
Analysts at Jefferies said their forecasts assume an US$80mln loss including aviation.
“Our key takeaway is that underlying performance has been better than expected, and Beazley has reiterated its combined ratio guidance of around 90%. Even if Beazley were to allow for potential aviation claims in Russia, its combined ratio would remain unchanged, which is very reassuring.”
The shares rose over 4% to 424.4p in early trading.