Insurer Beazley on Friday reported higher-than-expected gross written premiums, driven by cyber & executive risk and its specialty lines divisions as it set aside $125m in natural disasters claims, including Hurricane Ida and the European floods.
The company, which provides casualty and property, cyber and political risk insurance, said it now expects combined ratio – a profitability measure – to be in the mid-90s for the year. A level below 100% indicates an underwriting profit.
Gross premiums written increased by 29% in the nine months to September 30 to $3.2bn. The company added that third-quarter catastrophe loss estimates were $125m net of reinsurance, $85m in respect of Hurricane Ida and $40m for European floods.
“Total natural catastrophes this year have been in excess of the relevant catastrophe margins held within our reserves. The full year combined ratio is now expected to be mid 90’s assuming claims experience is as expected for the remainder of 2021,” Beazley said in a trading update.
Rates within the cyber & executive risk division were up 48%, driven predominantly by cyber where rates continued to exceed expectations,.
Premium rates on renewal business increased by 23%, ahead of the company’s expectations.
