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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Insurance

Retail sales and Beazley the main focus on Friday

How badly have consumer confidence and retail sales been affected by the gloomy headlines

At the end of the week, following some worrying warnings elsewhere in the insurance sector this month, Beazley will report half-year numbers.

It has already indicated losses of US$50m arising from the war in Ukraine though that estimate didn’t include anything from aviation so an update on that will be a key focus in its latest update.

The Lloyds-based underwriter has also had problems in its cybersecurity division over the past three years, but said in the last release it had got a handle on these.

Peel Hunt said exposures have declined materially since 2020 (ransomware frequency down 25% per policy) and attritional claims now seem under control, with the broker adding it expected Beazley to continue to innovate in digital and online distribution and might even start to increase cyber exposure slowly again.

Beazley has guided that its combined ratio (underwriting premiums plus costs minus claims) this year will be around 90% ( the lower the better) and again this is something the City would presumably like to be reiterated.

Retailers will also be in focus with the latest consensus for a fall of 0.3% month-on-month.

Anecdotal evidence from the chains has been mixed. Some such as Joules, Currey's and Halfords have been suffering but Frasers was rewarded on Thursday with a 25% share price hike after profits jumped and it was upbeat about the coming twelve months.

Possibly it is a beneficiary of downspending and comments about that from the ONS will be something to note.

Friday 22 July

Interims: Beazley

Finals: FRP Advisory Group PLC (AIM:FRP)

AGMs: DP Aircraft I Limited, Homeserve PLC (LSE:HSV), JD Sports Fashion PLC (LSE:JD.), Landore Resources Ltd (AIM:LND), Nanosynth Group PLC (AIM:NNN), President Energy PLC (AIM:PPC), TwentyFour Select Monthly Income Fund Limited, United Utilities Group PLC (LSE:UU.), Wandisco PLC (AIM:WAND)

Economic announcements: GFK Consumer Confidence (UK), Retail Sales (UK)

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