Beazley Announces Record Results

Beazley Group plc results for year ended 31st December 2007

 

London, 26 February 2008

 

  • Profit before tax of £138.5m (2006: £86.8m)
  • Profit before tax and foreign exchange on non monetary items increased to £130.3m (2006: £96.2m)
  • Return on equity of 28.0% (2006: 20.0%)
  • Final dividend of 4.0p per share, plus a special dividend of 4.0p per share

Growth across the business

  • Gross written premiums up 5% to £780.5m; net written premiums up 14% to £652.2m 
  • US$175.2m of business written through US operations (2006: US$68.9m)

Healthy financial position

  • Investment and cash balances up to £1,490.6m (2006 year end £1,167.8m)
  • Investment income at £64.9m (2006: £48.3m)
  • Prior year reserve releases of £64.1m (2006: £31.0m)

 

  Year ended 31 Dec 2007    Year ended 31 Dec 2006   % increase
Gross written premiums (£m) 780.5   745.1   5
Net written premiums (£m) 652.2   574.3   14
Net earned premiums (£m)  617.2    509.6    21
Profit before tax (£m)  138.5    86.8    60
Comprises:            
Profit before tax and foreign exchange adjustments on non monetary items (£m) 130.3     96.2     35
Foreign exchange on non monetary items (£m) 8.2     (9.4)    N/A
           
Earnings per share  28.1p    16.7p    68
Dividend per share - interim and final  6.0p   4.8p    25
Special dividend per share  4.0p         
Net assets per share  112.1p   89.8p    25

 

Beazley Group Chief Executive Andrew Beazley said:

“The company delivered excellent results across the board in 2007. Our Lloyd’s underwriters demonstrated strong risk analysis and selection skills and delivered very good returns as rates in most of our lines of business began to fall from historic highs.  Our claims staff continued to win praise for their service from clients and brokers – as well as industry awards.

 

“In the United States, our operations grew rapidly, more than doubling the premiums written locally in that market.   Our US-based underwriters are able to access smaller scale and less volatile business than is available to our underwriters at Lloyd’s.  This diversification of our business should stand us in good stead as the property/casualty market as a whole continues to soften.” 

 

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