Beazley kicks off buyback after profit hits a record

Insurance firm Beazley has kicked off a $325m (£255m) share buyback today after notching record profits over the past year.

In its full-year results this morning, the FTSE 100-listed Lloyd’s of London insurer said it had raked in pre-tax profits of $1.25bn (£1bn) in the 12 months to December, up from $584m (£458m) the previous year.

Net insurance premiums written by the firm surged to $4.7bn (£3.7bn) in the year from $3.7bn (£2.9bn) in 2022.

Beazley has been among a host of insurers to rake in cash over the past 12 months as geopolitical jitters and economic troubles lifted insurance premiums.

The firm said it would now kick off a $325m share buyback and expected further growth in the months ahead.

“The strength of Beazley’s expertise-led underwriting and claims management was the driver of the excellent combined ratio we achieved in 2023,” chief Adrian Cox said. 

“We believe that with increased demand for insurance that the accelerating risk environment is creating, as well as an adequate rating environment, we are well positioned to continue successfully growing our business and I remain confident that Beazley will see strong, long-term performance.”

Shares in the company have risen by over a quarter in the past 12 months and bumped up three per cent this morning.

The update comes weeks after Beazley announced a push into the cybersecurity sector with the launch of a cyber catastrophe bond. Bosses said they were now targeting further growth in the space after its written premiums rose to $1.18bn (£0.9bn) last year.

“Looking forward there is growing business demand for cyber insurance and we are pleased to see that the insurance and capital markets are responding by providing the additional capacity the market needs to reach its potential,” Cox added.