Beazley plc has released its trading statement for the first quarter of 2025, reporting a 2% increase in insurance written premiums to US$1.51 billion, up from US$1.48 billion in the same period last year.
Net insurance written premiums rose by 1% to US$1.25 billion, compared with US$1.24 billion in Q1 2024.
Renewal premium rates declined by 4%, reversing a 1% increase reported in the prior-year period. The company posted investment income of US$136 million, representing a 1.2% return, in line with the same return rate reported a year earlier when investment income totalled US$126 million.
Beazley said its gross insurance written premium growth guidance remains at mid-single digits for the year, with its combined ratio guidance also unchanged in the mid-80s range on an undiscounted basis.
Chief executive officer Adrian Cox said the business maintained its underwriting discipline despite softening market conditions in the first three months of the year.
The quarterly result was affected by updates to prior-year premium estimates across multiple lines, the company noted. Beazley said Q1 performance does not reflect its expectations for the full year, with overall growth still expected to fall within the mid-single digits range.
It is also worth noting that in 2024, Beazley reported a record profit before tax of US$1.42 billion, a 13% increase from the US$1.25 billion recorded in 2023.
In its cyber risks segment, Beazley noted continued competition in the market and said it is concentrating capital deployment in areas offering the best risk-reward balance. It said growth is strongest in Europe, while rate adequacy remains higher outside North America. The firm’s outlook for long-term potential in Cyber Risks remains unchanged.
Within MAP Risks, Beazley expects geopolitical uncertainty to contribute to demand over the year. However, the Q1 result was weighed down by premium estimate adjustments, though strong growth is still anticipated by year-end.
The Property Risks portfolio continued to expand, with rate levels described as adequate despite a 6% decline in renewal pricing during the first quarter.
Beazley also reported that subdued capital markets activity affected growth in some products within its specialty risks division. It said expectations remain for flat to moderate growth in that area through the year.
On claims, the insurer said its exposure to California wildfire losses remains approximately US$80 million, consistent with year-end 2024 disclosures. It confirmed there is no direct claims exposure from trade tariffs in its political risk, trade credit, or specialty lines, as such events are not insurable under its policies and associated business interruption losses are not covered.
Potential inflation-related impacts are integrated into the firm’s underwriting and claims management processes and continue to be monitored, though no material direct effect is currently expected.
Beazley’s investment portfolio yielded 1.2% in Q1, generating US$136 million. The firm cited increased volatility in equity and corporate bond markets following trade policy announcements by the US government in February and March. It noted that short-term US risk-free yields fell, contributing to asset value support.
The average yield on Beazley’s fixed income investments stood at 4.4% as of 31 March, with an average duration of 1.6 years. The portfolio is described as well diversified and conservatively positioned to manage ongoing market fluctuations.
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